SBA Loan Calculator: Estimate Payments and Loan Amount

How to Use The SBA Loan Calculator

An SBA Loan calculator is a helpful tool for you, if you’re interested in applying for an SBA loan. A calculator can help you estimate how much you should expect to repay on your loan each month.

An SBA loan calculator can also help you estimate how much you may qualify for if you take out an SBA loan. Once you fill out your information, the calculator will give you a range of dollar figures in which you may be able to borrow. This will give you an idea of the types of expenses you may cover and whether or not you might need to seek additional financing elsewhere.

Using the calculator couldn’t be easier. We’ll walk you through what inputs you need to do either estimate your monthly payment, or estimate the total loan amount you can potentially borrow.

Estimate Your Monthly Payment on an SBA Loan

An SBA Loan calculator is a helpful tool for you, if you’re interested in applying for an SBA loan. A calculator can help you estimate how much you should expect to repay on your loan each month.

An SBA loan calculator can also help you estimate how much you may qualify for if you take out an SBA loan. Once you fill out your information, the calculator will give you a range of dollar figures in which you may be able to borrow. This will give you an idea of the types of expenses you may cover and whether or not you might need to seek additional financing elsewhere.

Using the calculator couldn’t be easier. We’ll walk you through what inputs you need to do either estimate your monthly payment, or estimate the total loan amount you can potentially borrow.

Estimate Your Monthly Payment

To estimate your potential monthly payment on an SBA loan, your inputs will vary slightly depending on what you are seeking the SBA loan for. If you’re seeking real estate or to purchase a business, for example, you’ll identify the buyout amount.

Loan or Buyout Amount

The amount of funding you are seeking to buy out a business or a piece of real estate. While most SBA loans go as high as $5 million, SBA Express loans cap out at $350,000. Your credit, cash flow, and how you plan to use the proceeds will determine the amount for which you’re eligible. If you’re buying a new business, you’ll need to enter the buyout amount.

Down Payment Amount

Down payments are now required for working capital loans, while real estate SBA loans require a minimum down payment of 15%, but may vary. Since you’ll pay this amount up front, you won’t need to finance it, and it won’t count towards the total cost of your loan.

Term Length

Term length, or Loan term, refers to the estimated repayment term of the SBA loan for which you’re applying. In general, SBA loan terms go up to 10 years for working capital and up to 25 years for real estate. Keep in mind that the longer the term is for your loan, the lower your monthly payments will be.

SBA 7(a) loans allow for terms of up to 10 years. However, if you’re using the loan to finance real estate, you can extend the term length to 25 years.

SBA 504 loans come with terms of 10, 20, or 25 years.

The annual rate on your SBA loan will have an impact on your monthly payments and your overall cost of borrowing. A higher interest rate will lead to higher payments and a more expensive loan. SBA loans are variable rate loans based on the Wall Street Journal Prime Rate.

You’ll also need to factor in fees and rates to your estimated monthly payment, which we will cover next.

SBA Loan Interest Rates

Interest rates can vary, and are often negotiated between the borrower and the lender. Before you let that deter you, the SBA sets maximum limits in order to keep these loan products accessible.

Rates for SBA 504 loans typically amount to 3% of the amount borrowed, while rates for SBA 7(a) loans are tied to the prime rate, which change over time.

See the most current fixed and variable interest rates for SBA loans.

SBA Annual Rate (APR)

Interest rates for SBA loans are standardized by the SBA and are based on the WSJ Prime Rate. Annual percentage rate (APR) includes all borrower costs, including principal, interest, and fees.

SBA Loan Fees

SBA loans usually come with fees attached. If you choose an SBA 7(a) loan, for example, you’ll be on the hook for an SBA guarantee fee, which will be a percentage of the loan amount and depend on the size of the loan. There are also other various fees from the underwriting process.

The most significant SBA loan fee is usually the guarantee fee. Guarantee fees usually range from 2% to 3.75% of the guaranteed loan amount.

Here’s an overview of a few of the fees you might pay if you take out an SBA 7(a) loan, which is the most popular SBA loan.

Guarantee Fees

Guarantee fees are designed to cover the government’s costs in the event you default on your loan and the SBA must compensate the lender for their loss. These fees are typically between 2% and 3.75% of the guaranteed loan amount.

Packaging Fees

Packaging fees may be charged by lenders for putting your loan application together. They’re usually no more than 2%.

Extraordinary Servicing Fees

Extraordinary servicing fees compensate lenders for monitoring the value of your collateral and other special needs. These fees are typically no more than 2% per year on the outstanding loan balance.

Most SBA loans have a maximum loan amount of $5 million. The amount you qualify for will depend on factors like your credit, annual revenue, and what you intend to do with the funds.

Once you input information, like your loan amount or buyout amount, down payment percentage, and loan term,the calculator will generate an estimated monthly payment and total repayment.

Compared to other types of loans, SBA loans offer attractive interest rates. The rate you pay will depend on the loan program you choose, the loan amount and base rates, like the prime rate and Treasury rates.

While SBA loans usually require good credit and sufficient revenue, you may still qualify for one with fair or bad credit. Most loans require that you have a credit score of at least 640 and a monthly minimum revenue of $8,000, and have been in business for at least two years.

In general, the SBA loan approval process ranges from 30 to 90 days. Your loan type and lender, however, will determine the exact time frame.

Understanding Your Monthly Payment Amount

Based on your inputs, the calculator will provide you with four important figures. Let’s break down what these are.

Your Estimated Monthly Payment

This is the amount you’ll owe your SBA-approved lender each month. It includes payment toward your principal, interest, and guarantee fee, if applicable.

Estimated One-Time Fees

This will show you how much you may pay in one-time SBA fees, expressed as a dollar amount.

Estimated Down Payment

This will explain how much you will pay for a down payment, expressed as a dollar amount. This is based on your inputted percentage.

Total Repayment

Total repayment tells you the total amount of money you will have paid over the life of your SBA loan, incorporating loan amount, fees, and accrued interest over term length.

Understanding Your Amortization Schedule

When you make a monthly payment on your SBA loan, the payment is divided to cover a portion of total interest charges, and part of the principal loan balance.

This payment usually won’t be split right down the middle, so obtaining an amortization schedule from your lender can help you understand the interest payment structure, and how payments are distributed on interest versus principal.

The amortization schedule will also detail loan funds distribution timing, if applicable.

Typically, you pay more in interest when you first start your payment schedule in an amortization schedule, and more towards the principal loan balance later on.

When you retrieve your results from our SBA loan calculator, you will also receive a sample amortization table to help you understand how your payments could be amortized over your loan term.

Estimate How Much You May Qualify For

You can also estimate how much you may qualify for if you take out an SBA loan. Once you fill out your information, the calculator will give you a range of dollar figures in which you may be able to borrow. This will give you an idea of the types of expenses you may cover and whether or not you might need to seek additional financing elsewhere.

To estimate how much you may be able to qualify for with an SBA loan, you’ll need a few different inputs.

Business Start Date

This is the month and year your business officially started operations. In general, if you’ve been in business at least two or three years, you have a good chance of qualifying. However, some SBA loan products, like SBA microloans, are geared towards very new businesses who have less time in business than others.

Annual Revenue

This refers to the total amount of money your business makes during a 12-month period.

Last Month’s Deposits

Last month’s deposits show how much money you deposited into your business bank account in the previous month.

Estimated Credit Score

This is where you select your business’ estimated credit score. This is different than your personal credit score, although business owners personal credit history can be a qualifying factor, especially for very new businesses without much established credit.

Understanding Your Total Loan Estimate

After you enter your inputs, Lendio’s SBA Loan Calculator will give you an estimated loan amount, with a minimum and maximum band. It is important to note that this is only an estimate, based off data from recently funded SBA loans with Lendio’s partners.

Once you receive your loan estimate, consider pursuing an application with Lendio to see all possible SBA loan offers based on your application and business information.

Limitations of SBA Loan Calculator

There are some limitations to consider when using our SBA loan calculator. Here are some things to keep in mind:

Interest Rate

The SBA loan calculator can only factor in an estimated interest rate. This rate will vary with your lender, and is based on their assessment of your business and creditworthiness. Your actual monthly payments could be higher or lower than provided by the calculator, depending on your final interest rate.

SBA Fees

Lenders may charge more or less in fees to you during the underwriting process. This depends on how they have opted to work with the fees the SBA charges to the lender. This may pass to you upfront, or the lender may also charge an annual service fee. Our calculator is unable to account for all possible fees from individual lenders, which means your payment amount may vary from the estimate shown.

Loan Amount

Our loan amount estimation is based off of relevant data from similar applicants with Lendio’s partners that offer SBA loan products. While this data gives loan amounts that were offered to comparable applicants, individual lenders may offer more or less than reflected in the estimate.