This calculator doesn't measure performance, but rather shows what the monthly repayments would be for a loan of a given amount over a given period at a given rate of interest. This will be very helpful when considering borrowing from a lender. It will allow you to determine whether you can afford the loan. The lender will take great care to make sure the business is capable of repaying the loan, often by using some of the ratios above. Being able to work out your own affordability position will be reassuring to the lender and will more likely result in a successful negotiation. Having a loan application rejected can have serious consequences, as other lenders might assume that there is an unseen risk and also be unwilling to lend, while all along it might simply be a question of extending the loan period to make the monthly payments more affordable.