About the SBA Loan Calculator
The US Small Business Administration does not usually lend directly; it guarantees part of loans made by banks and certified development companies (CDCs), which lets lenders offer longer terms and lower down payments than typical business loans. This calculator estimates what those loans cost each month and upfront.
For an SBA 7(a) loan, enter the loan amount, rate and term, plus the guaranteed share and the upfront guarantee fee, and choose whether the fee is rolled into the loan. For an SBA 504 loan, enter the total project cost: the calculator applies the standard structure — a bank first mortgage for 50%, a CDC/SBA debenture for the rest after your down payment — and combines both payments.
By default the 7(a) guarantee fee follows SBA’s published schedule for fiscal year 2026 (loans approved 1 October 2025 to 30 September 2026, Information Notice 5000-872051): for maturities over 12 months, 2% of the guaranteed portion on loans up to $150,000, 3% from $150,001 to $700,000, and 3.5% above that, plus 3.75% on any guaranteed amount over $1 million. Loans to manufacturers of $950,000 or less pay no upfront fee in FY2026. SBA sets fees each fiscal year; the FY2027 schedule (loans approved from 1 October 2026) had not been published when this page was updated, so choose “Enter my own fee %” if your lender quotes a different rate. The 504 fee input defaults to about 3% of the debenture, which SBA describes as the typical total of CDC and SBA fees (the FY2026 SBA upfront guaranty fee within that is 0.5%). Payments assume a fixed rate and level monthly amortization; many 7(a) loans have variable rates tied to the prime rate, so the default rates are illustrations only.
With the default inputs, the monthly payment is $6,898.55. Change any value above to recalculate instantly.
How to use the sba loan calculator
- 1Choose SBA 7(a) for general-purpose borrowing or 504 for real estate and major equipment.
- 2For 7(a), enter the loan amount, rate, term, guaranteed share and guarantee fee.
- 3For 504, enter the project cost, your down payment and the bank and CDC rates and terms.
- 4Review the monthly payment, fees and cash needed at closing.
- 5Compare against a conventional business loan before you apply.
Formula and method
Each loan is amortized with the standard fixed-rate formula, where P is the amount financed, r the monthly rate (annual rate ÷ 12) and n the number of monthly payments. For a 7(a) loan the SBA guarantee fee is charged on the guaranteed portion only, at the FY2026 tier set by the gross loan amount (2%, 3%, or 3.5% with 3.75% on guaranteed dollars above $1 million) unless you enter your own rate; if you roll it into the loan, P includes the fee.
An SBA 504 project is split three ways: a bank lends 50% of the project cost in first position, the CDC debenture covers the remainder less your down payment (40% with 10% down), and CDC/SBA fees are added to the debenture. The monthly payment shown is the sum of the bank and debenture payments.
- M
- Monthly payment for each loan piece
- P
- Amount financed (including any financed fees)
- r
- Monthly interest rate
- n
- Number of monthly payments (term × 12)
Worked examples
$500,000 7(a) loan over 10 years
A $500,000 loan falls in the FY2026 3% tier, charged on the 75% guaranteed portion: $500,000 × 0.75 × 0.03 = $11,250. Rolling it in gives $511,250 financed at 10.5% for 120 months, a payment of $6,898.55 and about $316,576 of interest.
$150,000 7(a), fee paid in cash
At $150,000 the FY2026 schedule charges 2% of the 85% guaranteed portion: $150,000 × 0.85 × 0.02 = $2,550, paid at closing. The $150,000 loan at 11.5% over 10 years costs $2,108.93 a month.
$1.5M 7(a) real estate loan over 25 years
The guaranteed portion is 75% of $1.5M = $1,125,000. Above $700,000 the FY2026 fee is 3.5% on the first $1,000,000 guaranteed ($35,000) plus 3.75% on the $125,000 above it ($4,687.50), or $39,687.50. Rolled in, $1,539,687.50 at 10.25% over 300 months costs $14,263.41 a month and about $2.74 million in interest.
$1M building with an SBA 504 loan
The bank lends $500,000 at 7.5% over 25 years ($3,694.96/month). The CDC debenture covers $400,000 plus $12,000 of financed fees at 6.5% over 25 years ($2,781.85/month). You put $100,000 down and pay about $6,476.81 a month in total.
Frequently asked questions
What is the difference between SBA 7(a) and 504 loans?+
7(a) loans are flexible and can fund working capital, equipment, inventory, acquisitions or real estate. 504 loans are only for major fixed assets such as buildings and heavy equipment, but offer long fixed rates on the CDC portion and a low down payment.
How much is the SBA guarantee fee?+
For 7(a) loans approved in fiscal year 2026 with maturities over 12 months, the upfront fee is 2% of the guaranteed portion for loans of $150,000 or less, 3% for $150,001 to $700,000, and 3.5% for $700,001 to $5 million plus 3.75% on any guaranteed amount over $1 million. Loans of 12 months or less pay 0.25%, and loans to manufacturers of $950,000 or less pay 0%. For 504 loans the FY2026 SBA upfront guaranty fee is 0.5% (waived for manufacturers). Fees are reset each fiscal year starting 1 October, so confirm with your lender.
What down payment does an SBA loan require?+
504 loans typically require 10% down, rising to 15% for new businesses or special-purpose properties and 20% when both apply. 7(a) lenders often require an equity injection of around 10% for startups and acquisitions.
What are current SBA loan interest rates?+
7(a) rates are negotiated with the lender but capped at a base rate (usually prime) plus a maximum spread that depends on loan size: 6.5% for loans of $50,000 or less, 6% up to $250,000, 4.5% up to $350,000 and 3% above $350,000 for variable rates. 504 debenture rates are fixed and set monthly when debentures are sold, based on Treasury yields.
How long can an SBA loan term be?+
7(a) terms are generally up to 10 years for working capital and equipment and up to 25 years for real estate. 504 debentures come in 10, 20 and 25-year terms.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.