SBA Loan Calculator: 7(a) Loan Payments & Amortization

Our SBA loan payment calculator will help you determine what your potential SBA loan payments may look like. It also provides a full amortization schedule that can demonstrate what amount of principal and interest you’ll be expected to pay.

SBA 7(a) loan calculator inputs

The inputs necessary for our SBA (7(a) loan calculator include items such as the loan amount and interest rate. It can also give you an estimate of your debt service coverage ratio (DSCR), a figure lenders often evaluate to determine eligibility for a loan.

Loan amount

The maximum loan amount for SBA 7(a) loans is typically $5 million, though lenders can choose to offer smaller or larger amounts depending on their policies. Beyond that dollar amount, however, lenders receive no additional insurance or protection from the SBA in the event a borrower defaults.

Loan amounts may also vary depending on the specific type of 7(a) loan you apply for. For instance, 7(a) small and express loans have a maximum of $350,000 and $500,000, respectively.

Repayment term

SBA 7(a) loans have a maximum repayment term of

• 10 years for equipment, inventory, or working capital
• 25 years for real estate

Interest rate

SBA 7(a) loans are subject to maximum rates that usually fluctuate with a benchmark rate index, such as the US Prime Rate or SBA PEG Rate. While individual lenders may offer more competitive rates, they cannot exceed the maximums established by the SBA.

See our guide on

SBA loan rates

to view the current maximums for each SBA loan program.

Annual business income

Your company’s net operating income (NOI) value will be used to calculate your DSCR, which is a common factor that lenders use to determine whether or not you meet minimum revenue requirements, regardless of the strength of your credit or finances.

SBA 7(a) loan calculator outputs

Once you’ve inputted the proper values, the calculator will configure outputs relating to your monthly payment and DSCR. You’ll also see an amortization table.

Monthly payment

This figure provides the expected payment amount that will be due each month. This consists of principal and interest and will be required throughout the loan term.

See to it that you’re comfortable with this figure, as failing to make timely payments — or missing payments altogether — can negatively impact your business credit score. That’s something that can make it more difficult to get approved for subsequent loans and impact the rates you qualify for.

DSCR

DSCR is designed to measure your company’s ability to repay debts based on its NOI. It’s calculated by taking your business NOI and dividing it by the current year’s obligations. A ratio of 1.25x or greater is usually good enough to qualify for a business loan.

Use our

DSCR calculator

to determine the figure for your company.

Amortization table

An amortization schedule is a table showing how your loan balance decreases with each subsequent payment made toward the outstanding balance. It also breaks down how much each of your payments is allocated to the principal and interest portions of your loan.

The amortization table provided shows that with a new loan, payments are mostly allocated toward interest. That said, as you continue making more payments, a larger portion of the payments goes toward the principal balance of the loan.

Other SBA loan fees

Our SBA 7(a) loan calculator will show you the recurring monthly payment amounts, but it’s also important to recognize other associated loan fees that may come with getting financing. Some of these costs can be paid upfront or rolled into your loan amount.

• SBA guarantee fee: SBA lenders that experience defaults have a portion of the financial losses covered by the SBA, and it’s this fee that helps cover the possibility of any such payouts. The SBA guarantee fee can range from 0% to 3.75%, depending on the details of your loan.
• Packaging fee: This may range from $2,000 to $4,000. It is meant to cover a lender’s costs for gathering, organizing, and compiling the paperwork required to meet SBA requirements.
• Extraordinary servicing fee: Complex loans may be subject to an additional servicing fee, generally up to 2% or more. This fee may apply when an unusual amount of additional due diligence is required, such as when additional inspections are needed to verify certain repairs on a construction project.
• Other third-party fees: Depending on the circumstances of your loan, you may incur fees from third-party vendors. Some common examples include fees assessed by a title company, appraisal company, or law firm and costs related to completing a business valuation or environmental property assessment.
• Prepayment penalty: If you’re considering paying your loan early or more than the minimum payment, be aware that SBA 7(a) loans with a repayment term longer than 15 years have a prepayment penalty for the first three years. Paying more than 25% of your loan may result in a 5% prepayment penalty for your first year, 3% in the second year, and 1% in the third year.

Other SBA loan programs

In addition to the 7(a) loan program, the SBA has other financing options available depending on your intended use of the funds. The SBA 504 loan program, for instance, can provide funding for acquiring large assets that promote the creation of jobs. Disaster loans are also available for businesses impacted by floods, hurricanes, or other declared disasters.

Head over to our guide on

SBA loan types, rates, and requirements

to learn about the different financing options available.

Frequently asked questions (FAQs)

Bottom line

If you’re looking to get a small business loan, our SBA 7(a) loan calculator can calculate your minimum monthly payments and illustrate how your loan balance would decrease with each payment. Since SBA loan programs can offer some of the most favorable rates and terms available, you’ll want to ensure that you qualify and that the parameters of the loan terms meet your business needs.