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SBA Loan Calculator

Estimate your SBA 7(a) or 504 monthly payment, with the guaranty fee for fiscal year 2027.

Level: Grades 11–12

  • Common Core standard HSA.SSE.B.4Derive the formula for the sum of a finite geometric series (when the common ratio is not 1), and use the formula to solve problems.
Printable worksheet

SBA Loan Calculator

Know the answer you need? Pick an input to work backward.

Inputs
SBA program
Is your business a manufacturer, in the food supply chain, or in a rural area?

SBA sets the exact industry codes. Your lender can confirm whether you qualify.

Usually 10 years or less, and up to 25 for real estate or long-lived equipment.

Result

Monthly payment

$6,746.75

A $500,000.00 7(a) loan at 10.5% for 120 months costs $6,746.75 a month, with a guaranty fee of $11,250.00.

SBA guaranty fee
$11,250.00Lenders may pass this on to you.
SBA-guaranteed part
$375,000.00
Cash left if the fee comes out of the loan
$488,750.00
Total interest
$309,609.98
Total of payments
$809,609.98
Most a variable rate can sit above the base rate
3%
What you repay
  • Loan$500,000.0061.8%
  • Interest$309,609.9838.2%

See the step-by-step solution ↓

Step-by-step solution

  1. Find the part SBA guarantees. It's up to 75% for a loan this size. That's the part the fee is charged on

    $500,000.00×75%=$375,000.00

  2. Find the FY 2027 guaranty fee. The rule here is 3% for a loan of $150,001 to $700,000

     fee on$375,000.00=$11,250.00

  3. Find the monthly payment. A standard formula finds the one amount that clears the loan in 120 months, where the monthly rate is the yearly rate ÷ 12

    $500,000.00×0.008751−(1+0.00875)−120=$6,746.75

  4. Find the total interest: all the payments added up, minus the loan

    $6,746.75×120−$500,000.00=$309,609.98

  5. If the fee comes out of the loan, this is the cash you have left to use

    $500,000.00−$11,250.00=$488,750.00

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Find out what an SBA-backed loan would cost your business each month. Choose the 7(a) program for most business needs, or the 504 program for big fixed assets such as a building. You'll see your payment and the SBA guaranty fee, using the figures for fiscal year 2027.

SBA doesn't usually lend the money itself. A lender makes the loan, and SBA promises to repay part of it if the borrower can't. That promise has a price, called the guaranty fee. A 504 project works differently, with a bank loan and a CDC loan side by side. A CDC is a Certified Development Company, a nonprofit lender for 504 loans.

Where it's used

Why this math matters outside the classroom:

  • Estimating the fee. An owner takes 75% of a $500,000 loan, then 3% of that $375,000, to find an $11,250 fee.
  • Buying a building. A dental practice splits a $1,000,000 project into $500,000 from a bank, $400,000 from a CDC and $100,000 down.
  • Planning the cash. A bakery plans around $488,750 rather than $500,000 when the guaranty fee comes out of the loan.
  • Monthly budgeting. A shop owner checks a $6,746.75 monthly payment against a year of real income before applying.

Grade level and standards: Grades 11–12; Common Core State Standards for Mathematics HSA.SSE.B.4. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Choose 7(a) or 504, and answer the question about your type of business.
  2. For 7(a), enter the loan amount, rate and term.
  3. For 504, enter the project cost, each lender's share, and each rate and term.
  4. Read your monthly payment, then check the fees and the cash you'd have left.

What the inputs mean

Is your business a manufacturer, in the food supply chain, or in a rural area?
For fiscal year 2027, SBA drops the upfront fee on 7(a) loans of $700,000 or less to manufacturers, food supply chain businesses and rural businesses. It waives both 504 fees for them too. SBA lists the exact industry codes, so check with your lender.
Loan amount
The full approved loan, including the part SBA doesn't guarantee. 7(a) loans go up to $5 million.
Loan term
SBA says the term should be the shortest that suits your ability to repay. It's 10 years or less, unless the loan pays for real estate or long-lived equipment. The most is 25 years.
Bank loan share
The usual split is 50% from the bank, 40% from the CDC and 10% from you. Some projects need more from you.
CDC loan share
A CDC is a Certified Development Company, the nonprofit lender for 504 loans.
Other CDC fees and closing costs
SBA says 504 costs total about 3% of the debt. This box starts at 2.5%, because the 0.5% guaranty fee is counted separately.

Formula and method

7(a) guaranteed part = loan × 85% (up to $150,000) or 75% (above)
7(a) fee, loans over 12 months: 2% (to $150,000), 3% (to $700,000), or 3.5% to $1,000,000 of the guaranteed part + 3.75% above
7(a) fee, loans of 12 months or less = guaranteed part × 0.25%
504 CDC loan = CDC share + 0.5% guaranty fee + other fees
payment = P × i ÷ (1 − (1 + i)^(−n)), where i = yearly rate ÷ 12

P is the loan amount, i is the monthly rate and n is the number of monthly payments. The payment formula finds the one amount that clears the loan on time.

The 7(a) fee isn't charged on the whole loan. It's charged on the part SBA guarantees. Lenders may pass it on to you, and it's often paid from the loan, which leaves you less cash to use.

A 504 project has two payments, one to the bank and one for the CDC loan. The calculator works them out separately and adds them. SBA also sets a yearly service fee on 504 loans of 0.203% of the balance. It's shown apart from the payment, so ask whether your quoted rate already includes it.

Worked example

A $500,000 7(a) loan at 10.5% for 10 years, for a business that doesn't get fee relief.

  1. Guaranteed part: $500,000 × 75% = $375,000.
  2. Guaranty fee: $375,000 × 3% = $11,250.
  3. Monthly rate: 0.105 ÷ 12 = 0.00875, with 120 payments.
  4. Payment: about $6,746.75 a month.
  5. Total interest: about $309,609.98.
  6. Cash left if the fee comes out of the loan: $500,000 − $11,250 = $488,750.

Result: The payment is about $6,746.75 a month, and the guaranty fee is $11,250.

Understanding the result

Check the payment against your business's real income, not just its sales. The DSCR calculator shows how much of a cushion you'd have.

If the fee comes out of the loan, plan with the smaller cash figure. In the example, that's $488,750 rather than $500,000.

Variable 7(a) rates have a ceiling tied to a base rate. For a loan above $350,000, the rate can sit up to 3% above the base rate. Smaller loans have higher limits.

Assumptions and limitations

  • The rate stays fixed, and you make equal payments at the end of each month. Many 7(a) loans are variable.
  • Fees are for loans SBA approves from October 1, 2026 through September 30, 2027.
  • The 7(a) lender's annual service fee isn't included, because lenders can't pass it on to you.
  • 504 fees are added to the CDC loan and worked out on the CDC's share.
  • It covers standard 7(a) and 504 loans only. Express, export, working capital and other special programs have their own fees or guaranty shares.
  • Two 7(a) loans within 90 days can count as one for the fee. This page treats each loan alone.
  • 504 refinancing without expansion has a slightly different annual fee, 0.204%, unless it's waived.
  • SBA's 504 page gives both $5 million and $5.5 million as the maximum. This page uses $5.5 million. Check with a CDC.
  • Being able to run these numbers doesn't mean you'd qualify. Lenders and SBA set the rules, and this isn't a loan offer.

Frequently asked questions

What's the difference between a 7(a) and a 504 loan?

A 7(a) loan is the general program, with one lender and many possible uses. A 504 loan pays for major fixed assets, such as land, buildings and equipment, using a bank loan and a CDC loan together.

Who pays the SBA guaranty fee?

The lender pays SBA, and it's allowed to pass the cost on to you. Often it's paid out of the loan. The annual service fee on a 7(a) loan is different, because lenders can't charge that to you.

Do the fees change?

Yes, SBA reviews them every fiscal year, which starts on October 1. This page uses the fiscal year 2027 notices, so the figures run through September 30, 2027.

How much of the loan does SBA guarantee?

Up to 85% on 7(a) loans of $150,000 or less, and up to 75% on larger ones. The guarantee protects the lender. If your business can't repay, you still owe the debt.

Why is my rate only an estimate?

Your lender sets it within SBA's limits, based on the loan and your business. Enter the rate you've actually been quoted for the best estimate.

Sources

How this calculator is checked

Method: SBA Information Notices 5000-881797 and 5000-881796 (FY 2027) and SBA's program pages, read directly on 2026-10-31; standard level-payment amortization. Tests use hand-worked fee tiers and separate decimal arithmetic. The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-31. Found a problem? Tell us.

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