Business Debt Burden Calculator
Estimate what percentage of your monthly revenue goes to debt payments — and whether the burden may be sustainable.
Include all debt: term loans, lines of credit, MCAs, equipment financing, etc.
What This Metric Means
Your debt-to-revenue ratio shows what percentage of your monthly revenue goes to debt payments. It's one of the most important indicators of whether your business is overleveraged — carrying more debt than its cash flow can comfortably support.
How It's Calculated
The calculator divides your total monthly debt payments by your monthly revenue. For example, if your monthly revenue is $50,000 and your total monthly debt payments are $15,000, your debt-to-revenue ratio is 30%.
Why It Matters
Lenders and financial professionals use this ratio to assess whether a business can sustain its debt load. While there's no universal threshold, a ratio above 30–40% is generally considered high and may indicate the business is overleveraged. If your ratio is in that range, it may be worth exploring debt relief options.
Limitations
This calculator is illustrative only. It doesn't account for seasonal revenue variations, the mix of debt types, interest rates, or your operating expenses. A business with a 30% ratio and high margins may be in better shape than one with a 20% ratio and thin margins. Use this as a starting point — not a complete financial analysis.
What to Do Next
If your debt burden is high, explore your business debt solutions — including refinancing, consolidation, and restructuring. Or submit your information for a capital review.