Published 2026-01-16 · Last updated 2026-02-15 · Reviewed by Valzura Editorial Team
SBA Loan Calculator
Model the payment on the loan program most used to buy a small business.
An SBA loan calculator estimates the monthly payment and total interest on a U.S. Small Business Administration loan, most commonly the 7(a) program used to acquire, expand, or refinance a small business. SBA 7(a) loans are made by banks with a partial government guarantee, carry terms up to 10 years for a business acquisition (25 years for real estate), and use a variable rate pegged to the prime rate plus a lender spread. Enter the amount, rate, and term to see the payment and a full amortization schedule.
The financed amount after your equity injection.
7(a) rates are prime plus a lender spread; adjust to today's rate.
Up to 10 years for a business, 25 years for real estate.
Monthly payment
$6,746.75
Total interest
$309,610
Over 120 payments.
Total repaid
$809,610
Amortization by year
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $29,871 | $51,090 | $470,129 |
| 2 | $33,163 | $47,798 | $436,965 |
| 3 | $36,818 | $44,143 | $400,147 |
| 4 | $40,876 | $40,085 | $359,272 |
| 5 | $45,380 | $35,581 | $313,891 |
| 6 | $50,381 | $30,580 | $263,510 |
| 7 | $55,933 | $25,028 | $207,577 |
| 8 | $62,097 | $18,864 | $145,479 |
| 9 | $68,941 | $12,020 | $76,538 |
| 10 | $76,538 | $4,423 | $0 |
How SBA 7(a) pricing works
SBA 7(a) loans are made by banks and credit unions with a partial government guarantee, which lets lenders offer longer terms and smaller down payments than a conventional loan. The rate is variable: it floats with the prime rate plus a spread the SBA caps. Because the rate can reset over the life of the loan, treat the payment above as an estimate at today's rate rather than a locked figure.
Terms, down payment, and eligibility
The 7(a) program allows terms up to 10 years for a business acquisition, equipment, or working capital, and up to 25 years when financing commercial real estate. Acquisition loans typically require an equity injection of around 10 percent of the total project cost, so enter only the financed portion above. Longer terms lower the monthly payment, which can be the difference between clearing a lender's coverage test and falling short.
The valuation an SBA lender will require
When an SBA 7(a) loan funds a business purchase above a set threshold, the lender requires an independent third-party business valuation to confirm the price is supported by earnings. They also test cash flow with a debt service coverage ratio. Going in with a defensible number strengthens your position: see the methods in our business valuation methods guide or run the free valuation calculator before you approach a bank.
Frequently Asked Questions
What is the interest rate on an SBA 7(a) loan?
SBA 7(a) rates are variable and set as the prime rate plus a lender spread capped by the SBA, so they move with prime. The exact spread depends on the loan size and term. Because the rate can change over the life of the loan, treat the calculator's figure as an estimate at today's rate.
What is the maximum SBA 7(a) loan term?
The maximum term is 10 years for a business acquisition, equipment, or working capital, and up to 25 years when the loan finances commercial real estate. Longer terms lower the monthly payment. This calculator assumes a single fully amortizing term at the rate you enter.
How much down payment does an SBA loan require?
SBA 7(a) acquisition loans typically require an equity injection of about 10 percent of the total project cost, though lenders may ask for more depending on the deal. The loan amount you enter above should reflect the financed portion after your down payment.
Can I use an SBA loan to buy a business?
Yes. Buying an existing business is one of the most common uses of the SBA 7(a) program. The lender will require a third-party business valuation when the loan amount exceeds a set threshold, to confirm the purchase price is supported by the business's earnings.
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