SBA Loan Calculator: Estimate Payments on 7(a), 504 Loans

Use our calculator to estimate the total costs of an SBA loan.
Randa Kriss
Rosalie Murphy
By Rosalie Murphy and  Randa Kriss 
Updated
Edited by Sally Lauckner

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Government-backed SBA loans offer low interest rates and long repayment terms, which can make them a great way to fund your business. The cost of an SBA loan will depend on the type of loan, funding amount, repayment term and interest rate.

Enter this information into our SBA loan calculator to estimate monthly bills and total payments on a 7(a), Express or 504 loan — and decide if one of these options is a good fit for your needs.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

SBA loan calculator

The best small-business loan for you is typically the one with the most favorable rates and terms that you can qualify for — which depends on how long you’ve been in business, your credit score, your revenue and other factors.

As you compare different options, you’ll want to estimate the total financing costs to make sure that you can afford to take on potential new debt.

How to use the SBA loan calculator

Enter your information

You need to enter the following elements into the calculator to determine the cost of an SBA loan.

Loan type

You can choose from these options:

  • SBA 7(a) loan. This is the most common type of SBA loan. SBA 7(a) loans can be used for working capital, business expansion, debt consolidation or buying real estate or equipment. These loans are issued by financial institutions, usually banks.

  • SBA Express loan. SBA Express loans are SBA 7(a) loans of up to $500,000 that can be approved more quickly than standard 7(a) loans. Export Express loans, which are also available in amounts up to $500,000, are designed exclusively for export businesses.

  • SBA 504 loan. SBA 504 loans have very long terms — up to 25 years — and can be used to finance real estate or equipment purchases. They are funded by Certified Development Companies, or CDCs, and financial institutions. You’ll need to put at least 10% down.

Loan amount

This is the amount of money that you’ll borrow from your SBA lender. Although loan amounts vary, each SBA loan type is subject to a maximum funding limit.

SBA 7(a) loans are available up to $5 million and SBA Express loans are available up to $500,000. SBA 504 loans are available up to $5.5 million.

Loan term

This is the amount of time (in years) it will take to repay the money you’ve borrowed. The maximum repayment term available is based on how you plan to use the loan. For SBA 7(a) and Express loans, the maximum repayment terms are up to:

  • 25 years for real estate.

  • 10 years for equipment.

  • 10 years for working capital or inventory loans.

For 504 loans, on the other hand, repayment terms are 10, 20 or 25 years, depending on the loan.

Interest rate

Your interest rate will be the cost of borrowing from your SBA lender. SBA loan rates for 7(a) loans (including Express loans) are pegged to the daily prime rate, which is based on the Federal Reserve’s actions. The rate you will pay is based on the daily prime rate plus a lender spread. 7(a) loan interest rates can be either fixed or variable. This calculator assumes a fixed rate.

For SBA 504 loans, interest rates are based on the market rate for 5- and 10-year U.S. Treasury bonds

U.S. Small Business Administration. 504 loans. Accessed Dec 18, 2023.
. Rates are fixed for the life of the loan.

You and your lender will negotiate your interest rate, so you may need to work with an estimated interest rate to use the SBA loan calculator.

Fees

Any fees that your lender charges will impact the cost of your SBA loan. Within this calculator, we’ve accounted for one of the most common fees, the SBA guarantee fee.

If an SBA 7(a) loan has a term of 12 months or longer, the lender is required to pay an upfront guarantee fee, which is a percentage of the loan amount that varies depending on the size of the loan. The lender can pass this guarantee fee onto the borrower,

Code of Federal Regulations. § 120.220 Fees that Lender pays SBA. Accessed Dec 18, 2023.
either adding it to your loan balance or as a separate charge after your loan disbursement.

Lenders also have to pay the SBA an annual service fee, which is a small percentage of the outstanding balance of the loan, on loans greater than $500,000. This fee cannot be passed onto the borrower.

It’s important to note that this calculator does not include some fee costs that vary from lender to lender. Your lender can charge service and packaging fees, filing and recording fees, and late payment fees. They can also seek approval from the SBA to charge additional fees if a loan will require an extraordinary amount of work to administer

.

Down payment

SBA 504 loans require a down payment, so you’ll be asked to choose a payment amount in the calculator. Because you pay this amount up front, you don’t need to finance it, and it doesn’t count toward your loan total.

Break down your results

Once you’ve input this information into the SBA loan calculator, you’ll receive:

  • Monthly payment. This is the amount you’ll owe your lender each month. It includes payment toward your principal, interest and guarantee fee (if applicable).

  • Total payments. This is the total amount you will pay back over the life of the loan. It includes the amount you borrowed, plus interest and guarantee fee (if applicable).

  • Total interest paid. This is the total amount you will pay your lender in interest. Repaying your loan early can help you save on interest — as long as your lender doesn’t charge prepayment penalties. The SBA also charges prepayment penalties if you prepay within the first three years of your loan term, if the total loan term is 15 years or longer.

  • Amortization schedule. This represents how much of each monthly payment will go toward your principal and how much will be spent on interest. Over time, your monthly payment will remain the same, but your interest payments will get smaller and more of your payment will go toward your principal.

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NerdWallet rating 

5.0

/5
NerdWallet rating 

5.0

/5
NerdWallet rating 

4.5

/5

Est. APR 

20.00-50.00%

Est. APR 

35.40-99.90%

Est. APR 

15.22-45.00%

Min. credit score 

625

Min. credit score 

625

Min. credit score 

660

How to qualify for an SBA loan

SBA loan requirements can vary depending on the lender you’re working with and which loan program you’re applying for.

All SBA loans require the following, though:

  • You must be a for-profit business.

  • You must have invested your own time and money, or another form of equity, into your business.

  • You have to explain what you plan to use the funds for and why you need the financing.

  • You must be a small business. The SBA’s definition of “small business” depends on your annual revenue or number of employees and varies depending on your industry.

    You can see the SBA’s business size definitions here.

Is an SBA loan right for me?

SBA loans can be one of the most affordable small-business financing options. These loans tend to have long repayment terms, competitive interest rates and can be used for a wide variety of purposes.

Although SBA loans can be difficult to qualify for, they’re a good option for established businesses with good credit. If you’re considering one of these products, you’ll want to use an SBA loan calculator to estimate potential costs to see if you can afford to take on new debt.

As you explore different solutions, it’s important to keep in mind that loan features — amounts, repayment terms, interest rates and fees — vary based on your lender and qualifications, so you’ll want to compare several options to find the best deal for your business.

Learn more about SBA loans: