How to use the SBA loan calculator
Pick the program that fits your project. Use the 7(a) calculator for working capital, equipment, refinancing, or buying a business. Use the 504 calculator for real estate and long-life equipment. Enter the project cost, your down payment, and the rate and fees from your lender's quote to see the monthly payment and the cash you need at closing.
Rates in the calculator are examples only. SBA loan rates are negotiated with the lender and cannot exceed SBA maximums, so always use the numbers from your own quote.
SBA 7(a) vs. 504 at a glance
| 7(a) | 504 | |
|---|---|---|
| Maximum loan | $5 million | $5.5 million |
| Common uses | Working capital, equipment, refinancing, buying a business, real estate | Buying or building real estate, long-life machinery and equipment |
| Terms | Usually up to 10 years; up to 25 years for real estate | 10, 20, or 25 years |
| Rate | Negotiated with the lender, subject to SBA maximums | CDC portion is fixed, pegged above the 10-year Treasury rate |
| Structure | One loan from an SBA lender | Bank loan (up to 50%), CDC loan (up to 40%), your down payment (at least 10%) |
For a deeper comparison, see SBA loans vs. bank loans and our SBA loans page.
Worked examples
7(a): buying equipment and working capital
A $500,000 project with 10% down leaves a $450,000 loan. At an example rate of 10.5% over 10 years, the payment is about $6,072 a month, with about $278,649 of interest over the full term.
504: buying a building
A $1,000,000 building with 10% down splits into a $500,000 bank loan and a $400,000 CDC loan (about $412,000 with 3% fees financed). At example rates of 7.5% and 6.5% over 25 years, the payments are about $3,695 and $2,782, or $6,477 a month in total.
What changes your SBA payment
- Term: a 25-year real estate term lowers the payment a lot compared with a 10-year term, but you pay more interest overall.
- Down payment: SBA lenders often require more for startups, business acquisitions, and special-purpose property. Ask your lender what applies to you.
- Variable rates: many 7(a) loans adjust with the prime rate, so the payment can change over time.
- Fees: SBA guaranty fees and lender closing costs depend on the loan size and program. Rolling them into the loan raises the payment slightly.
Lenders also check that your cash flow covers the new payment. Use our DSCR calculator to see how the payment fits your income, and read business loan requirements before you apply.
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Frequently asked questions
How do I calculate an SBA loan payment?
Subtract your down payment from the project cost to get the loan amount, then apply the interest rate and term. The calculator uses the standard amortization formula: monthly payment = loan × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n is the number of months.
What is the maximum SBA loan amount?
SBA 7(a) loans go up to $5 million and SBA 504 loans go up to $5.5 million. Your actual amount depends on your cash flow, collateral, and the lender.
How long are SBA loan terms?
7(a) loans are usually up to 10 years, or up to 25 years when financing real estate. 504 loans come in 10, 20, and 25-year terms.
How much is the down payment on an SBA loan?
504 loans require at least 10% from the borrower, and more for some startups and special-purpose properties. 7(a) down payments are set by the lender and SBA rules, and are often higher for startups and business purchases.
Does the calculator include SBA fees?
Yes, if you enter them. Add the guaranty and closing fees from your lender's quote. For 504 loans, SBA says fees total about 3% of the debenture and are usually financed into the CDC loan.
Sources
- 7(a) loans, U.S. Small Business Administration
- 504 loans, U.S. Small Business Administration
- 7(a) loan program terms, conditions, and eligibility, U.S. Small Business Administration
Disclaimer: This calculator is for educational and comparison purposes only and does not constitute a loan offer, financial advice, tax advice, or a guarantee of terms. Example values are illustrations, not quotes. SmallByzLoans is a funding marketplace, not a lender or financial advisor.