SBA Loan Calculator

SBA Loan Calculator

SBA loans are government-backed business loans with favorable terms for small businesses.

What This Calculator Shows

• Monthly Payment: Your expected payment amount based on loan terms
• Total Interest: The cost of borrowing over the loan lifetime
• Amortization Schedule: How payments split between principal and interest
• Payment Breakdown: Visual representation of your loan costs

How to Calculate

1. Enter your loan amount 2. Input the interest rate (APR) 3. Select the loan term 4. Review your payment details and total costs

Key Considerations for SBA Loan

• Compare offers from multiple lenders before committing
• Understand all fees including origination, closing costs, and prepayment penalties
• Consider how rate changes might affect your payments (for variable rates)
• Factor in your overall financial goals and debt-to-income ratio

SBA loans are made by banks and partly guaranteed by the Small Business Administration — 75–85% of the loan — which is what lets a bank lend to a business it would otherwise decline.

Programme	Use	Maximum	Term
7(a)	Working capital, acquisition, refinancing	$5M	10 yr (25 for real estate)
504	Real estate and heavy equipment	$5.5M	10–25 yr
Microloan	Startup and small working capital	$50,000	6 yr
Express	Faster approval, lower guarantee	$500,000	Varies

Rates are capped relative to prime, so they undercut conventional business lending, and the down payment is lower — often 10% against 20–30%.

The cost is process: personal financial statements, business plan, projections, collateral schedules, and 30–90 days. The guarantee fee (2–3.75%) is usually financed into the loan. Worth it for the rate on anything you plan to hold for years.

The Numbers This Page Opens With

The calculator above starts at $250,000 over 10 years at 8%, which is representative for this product:

Monthly payment	$3,033
Total repaid	$363,983
Total interest	$113,983
Interest as a share of principal	46%

Change any input above and every figure recalculates. The amortisation formula behind it:

`` M = P × [ r(1+r)^n ] / [ (1+r)^n − 1 ]

P = principal, r = monthly rate (annual ÷ 12), n = number of payments ``

Before You Sign

• Compare APR, not the rate. APR includes origination and points; the rate does not.
• Ask about prepayment penalties. They turn a plan to pay early into a fee.
• Rate-shop inside 14 days. Credit scoring models treat multiple mortgage or auto

enquiries in that window as one enquiry.

• Check whether the payment includes escrow. A mortgage quote without taxes and insurance

understates the real monthly cost by hundreds.

Where the Money Goes

On $250,000 at 8% over 10 years, paying $3,033 a month:

Point	Principal repaid	Interest paid	Balance
Year 1	$17,013	$19,385	$232,987
Year 3	$45,217	$45,779	$204,783
Year 5	$100,408	$81,584	$149,592
Year 8	$167,774	$105,213	$82,226
Year 10	$250,000	$113,983	$0

Early payments are mostly interest. That is not a fee structure — it is arithmetic: interest accrues on the outstanding balance, which starts at its largest. It is also why an extra payment made early saves far more than the same payment made late.

What a Rate Change Costs

Rate	Monthly	vs 8%	Total repaid
7.00%	$2,903	-$130	$348,325
7.50%	$2,968	-$66	$356,105
8.00%	$3,033	—	$363,983
8.50%	$3,100	+$66	$371,957
9.00%	$3,167	+$134	$380,027

Half a percentage point moves the monthly payment by $66 and the total by $7,974. Shopping three lenders usually beats any amount of negotiating on price.