SBA Loan Calculator

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Reviewed by: David Chen, CFA
David is a Chartered Financial Analyst with over 15 years of experience in corporate finance and commercial lending, specializing in small business (SBA) and enterprise loans.

This 4-in-1 SBA Loan calculator helps you estimate your SBA 7(a) or 504 loan payments. Enter any three variables—Loan Amount, Annual Rate, Term, or Monthly Payment—and we will solve for the fourth.

Loan Amount ($) (P)

Annual Rate (%) (R)

Loan Term (Years) (T)

Monthly Payment ($) (M)

SBA Loan Payment Formulas

Solve for Monthly Payment (M):
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

Solve for Loan Amount (P):
P = M [ (1 + i)^n – 1 ] / [ i(1 + i)^n ]

Solve for Loan Term (T):
T = ln(M / (M – Pi)) / (n * ln(1 + i))

Solve for Rate (R):
Solved iteratively (no direct formula)

Formula Source: U.S. Small Business Administration (SBA)

Formula Variables

(P) Loan Amount: The total principal amount borrowed. For SBA 7(a) loans, this can go up to $5 million.
(R) Annual Rate: The total annual interest rate, which is typically a base rate (like the Prime Rate) plus a spread set by the lender.
(T) Loan Term: The repayment period. For SBA 7(a) loans, this is often up to 10 years for working capital or 25 years for real estate.
(M) Monthly Payment: The fixed monthly payment (Principal & Interest) required to pay off the loan.
(i) Monthly Rate: The annual rate divided by 12.
(n) Total Payments: The total number of payments (Term in years * 12).

Related Calculators

What is an SBA Loan Calculator?

An SBA Loan Calculator is a financial tool designed to estimate the monthly payments on a loan partially guaranteed by the U.S. Small Business Administration (SBA). The SBA doesn’t lend money directly; instead, it provides a guarantee to lenders (like banks) which reduces their risk and encourages them to offer loans to small businesses with favorable terms.

The most common SBA loans are the 7(a) and 504 programs. These are amortizing term loans, meaning you receive a lump sum and pay it back in regular installments (principal and interest) over a set period. This calculator models that repayment structure.

This 4-in-1 calculator allows you to solve for any of the four main variables in the loan equation. You can estimate your monthly payment, determine the total loan amount your business can afford based on a payment, see how a different interest rate changes your payment, or find the term required to meet your budget.

How to Calculate SBA Loan Payments (Example)

Identify Your Variables
You are approved for an SBA 7(a) loan (P) of $250,000 for working capital. The Annual Rate (R) is 11.5% (Prime Rate + 3%), and the Loan Term (T) is 10 years. You want to find your Monthly Payment (M).
Convert Annual Rate to Monthly (i)
First, convert the annual rate to a monthly decimal: i = (11.5% / 100) / 12 = 0.115 / 12 = 0.009583
Calculate Total Number of Payments (n)
Next, find the total number of monthly payments: n = 10 Years * 12 Months/Year = 120 payments
Apply the Amortization Formula
Use the standard loan payment formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
M = 250,000 [ 0.009583 * (1 + 0.009583)^120 ] / [ (1 + 0.009583)^120 – 1 ]
M = 250,000 [ 0.009583 * (3.1408) ] / [ 3.1408 – 1 ]
M = 250,000 [ 0.030099 ] / [ 2.1408 ]
M = 250,000 * 0.014059
M = $3,514.84
Final Result
Your fixed monthly principal and interest payment for the 10-year SBA loan will be $3,514.84.

Frequently Asked Questions (FAQ)

What is the typical interest rate for an SBA loan?

SBA loan rates are typically variable and tied to a base rate like the Prime Rate, plus a “spread” or margin set by the lender. The SBA sets maximums for this spread. As of late 2023 / 2024, rates might range from 9% to 12% or more, depending on the loan size and term.

What is the maximum term for an SBA loan?

It depends on the loan’s purpose. For the 7(a) program, terms are generally: 10 years for working capital or inventory, 10 years for equipment, and 25 years for real estate. This calculator can model any of these terms.

How much can my business borrow with an SBA loan?

You can use this calculator to estimate this. Enter the Monthly Payment (M) your cash flow can support, a current Annual Rate (R), and the Loan Term (T) (e.g., 10 years). The calculator will solve for the Loan Amount (P) you can likely afford.

Does this calculator include the SBA guarantee fee?

No. This calculator models the principal and interest payments. The SBA guarantee fee is a separate, one-time fee (typically 2-3.75%) that is usually rolled into the loan principal. You should add this fee to your desired loan amount in the “Loan Amount” field for a more accurate payment estimate.

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