SBA Loan Calculator
Estimate monthly payments on SBA 7(a) and 504 small business loans.
About the SBA Loan Calculator
SBA 7(a) loans go up to $5 million, with maximum terms of 10 years for working capital and equipment and 25 years for real estate. Rates are negotiated with the lender but capped by the SBA at the prime rate plus a set spread. SBA 504 loans finance property and major equipment through a bank and a Certified Development Company.
The formula
Payment = P × i ÷ (1 − (1 + i)⁻ⁿ)
Worked example
Example: Monthly payment = $7,890.90
- Inputs: Loan amount: $550,000; Interest rate (yearly): 12%; Use: Working capital / equipment (10 years).
- Formula: Payment = P × i ÷ (1 − (1 + i)⁻ⁿ)
- Result: Monthly payment = $7,890.90
- Total interest: $396,908
- Total of payments: $946,908
Questions people ask
Are there guarantee fees?
Yes, an upfront guarantee fee on larger loans, often financed; check the SBA's current fee notice.
What's needed to qualify?
A for-profit US business, reasonable credit and the ability to repay; lenders may ask for collateral.