SBA 7(a) Loan Calculator: Payments & Amortization

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Written By Obaid Ur Rehman

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For SBA 7(a) Loan and SBA Express Loans, our Small Business Administration (SBA) loan calculator was created. The calculator will produce an anticipated monthly payment and a projected amortization schedule once you enter the loan term, desired loan amount, expected interest rate, and yearly net operating income.

SBA Loan Payment Calculator Inputs

Video Credit: SBA Ray

When using our SBA loan calculator, there are four essential pieces of information you’ll need to enter:

Loan amount:

The loan amount you’re requesting for is the calculator’s first and most crucial input. This has to be as precise as possible. Up to $350,000 in SBA Express loans and up to $5 million in 7(a) loans are available.

Term (in years): 

This is the anticipated loan payback period that you are requesting for. For working capital loans, the typical period is 10 years, whereas for real estate loans, the typical length is 25 years. Your loan’s monthly payments will be cheaper the longer it takes to pay them back.

Expected interest rate:

Only interest rates up to the maximum SBA loan interest rate will be accepted by the calculator. Your payment amount is influenced by the interest rate on your loan; a higher interest rate results in a greater payment.

You may also like reading: Best Virtual Terminals for Small Businesses In 2023

Annual business income: 

Enter the yearly gross income that your company brings in. Don’t forget to mention your pay. Since most lenders employ an average rather than a single year, do so over the past two years on average for the best outcomes.

How To Read Your SBA Loan Calculator Results

How To Read Your SBA Loan Calculator Results
How To Read Your SBA Loan Calculator Results

Monthly payment:

The monthly payment is the main result of the SBA loan calculator. It’s crucial to double-check this figure to make sure you can afford the sum and feel at ease making a payment this size. The interest rate on the loan, as well as the loan amount and period, have an influence on the monthly payment.

Debt service coverage ratio (DSCR): 

A statistic that contrasts your company’s debt and income is called the DSCR. Lenders desire a DSCR of at least 1.25. Please take note that the SBA loan is the only debt included in our DSCR result; any other possible business debt is excluded.

Amortization schedule:

Based on the data supplied, the SBA loan calculator creates an approximate amortization schedule. Over the length of the loan, the amortization plan divides each monthly payment into principal and interest. This enables you to examine how terms and interest rates impact your payments.

Are SBA loans necessary for you? You may access more than 75 lenders through Lendio, who provide both SBA loans and non-SBA funding. With a brief online application, their competitive marketplace may get you pre-qualified in a matter of days, giving you alternatives for the finest financing solutions for your company.

What’s Not Included in the SBA Loan Payment Calculator

Your monthly SBA 7(a) or Express loan payment can be estimated using our SBA loan calculator. It isn’t a complete calculator, though. The costs related to SBA loans are not taken into consideration by our calculation. These fees include the costs of loan packaging, loan closure, SBA loan guarantee, and lender origination. Some costs could be able to be added to the total amount of your loan, while others would need to be paid up front. Furthermore, should you decide to apply, our SBA loan calculator does not include information to assist you establish your eligibility for the SBA 7(a) or SBA Express loan programs.

SBA Loan Payment Factors

The SBA loan calculator’s numerous inputs, outputs, workings, and things it doesn’t cover have all been briefly covered. Now that the fundamentals have been covered, we may explore the specific roles that each of these factors plays in the computations. Before you choose a financing option, it’s critical to comprehend how much an SBA loan will cost both in the short and long terms.

SBA loan costs and monthly loan payments are typically affected by the following.

1. Loan Amount & Terms

Larger loan amounts and shorter loan terms typically come with cheaper interest rates. The maximum loan amount for SBA loans is $5 million, while the maximum payback lengths for working capital loans and real estate loans are 10 years and 25 years, respectively.

2. SBA Loan Interest Rates

The maximum SBA interest rates that lenders may charge for SBA 7(a) loans are determined by the government. The length of the loan term and the loan amount being borrowed determine the maximum interest rates. 7(a) loans may have fixed or variable interest rates. When you have a variable rate, your interest rate is subject to fluctuations in the market. The interest rate and payments on the loan will increase if market rates increase. Usually, this rise in interest rates happens gradually over a period of years.

3. SBA Loan Fees

The guarantee charge is often the biggest SBA loan cost. The charge is often added to the total loan amount after being initially paid by the lender and is virtually always transferred to the borrower at closing.

The guarantee charge, which varies depending on the size and length of your loan, is up to 3.75% for loans above $1 million.


SBA loans are typically the most cost-effective choice for small company owners looking for funding. You may use the SBA business loan calculator to estimate the monthly payment for an SBA 7(a) loan for working capital or commercial real estate and to get a breakdown of your loan’s amortization.

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