SBA Loan Calculator
Small Business Administration (SBA) loans are popular, low-cost resources for many businesses.
Have you been offered an SBA loan? You can use this calculator to estimate everything you need to know to make an informed borrowing decision.
How To Use The SBA Loan Calculator
Input the following data into the calculator:
Calculator Input
- Loan Amount: The amount you are borrowing. This number is expressed as a dollar amount.
- Interest Rate: Your interest rate. This number is expressed as a percentage.
- Origination Fee: Any fee, expressed as a percentage, that is deducted from the loan amount before you receive the funds. While these fees are commonly called origination fees, some lenders might call them something else, such as a processing fee, referral fee, or others. If it’s a percentage, it can go in this input.
- Closing Costs: Any fee, expressed as a dollar value, that is deducted from the loan amount before you receive the funds. While all SBA loans will carry some sort of fees, they might not all have closing costs.
- Number Of Payments: The number of payments you will have to make to pay off your loan. Because 10 years is a common term length for SBA loans, most loans will have 120 payments.
Interpreting Your Results
Use the following as a guide to understanding the outputs you’ll receive from the calculator; remember, these results are only as accurate as the information you’re entered.
- Total Repayment: The estimated total amount you will have to repay, including the original borrowing amount, fees, and interest charges.
- Financing Cost: The estimated total amount you will have to repay in fees, including interest charges and other fees.
- Payment Per Month: The estimated amount you will have to pay every month. This is a fixed number, but might go up or down if your interest rate changes.
- APR: The estimated annual percentage rate (APR), which includes the interest and any other fees charged during the lending process.
- Cents On The Dollar: The amount you’re paying in fees and interest charges per dollar borrowed. For example, if your cents in the dollar cost is 0.21, you are paying $0.21 in fees and interest charges for every $1.00 borrowed.
What Is An SBA Loan?
The Small Business Administration is a government agency dedicated to helping small businesses and strengthening the economy. Among other services, the SBA does this by offering multiple loan programs.
- The most popular program is the 7(a) Loan Program, which includes many types of loans that can be used for most general business purposes. Of particular note is the SBA Express Program—general-use 7(a) loans with an expedited application process.
- While you can finance fixed assets with a 7(a) loan, business owners interested in financing real estate, machinery, or other high-cost fixed assets might be interested in the CDC/504 Loan Program. Borrowers benefit from low-interest, fixed-rate loans with long term lengths.
- If your business would benefit from a small amount of cash, the SBA works with intermediaries to offer Microloans. These loans have borrowing amounts of less than $50,000 and carry reasonable interest rates.
- If your business or home has been affected by a disaster, you might be eligible for a Disaster Loan. The SBA makes loans to businesses if they have been physically or economically damaged in a federally declared disaster area.
This loan calculator will work for all SBA loans. For more information on the SBA’s programs, check out our article on the subject: SBA Loans Explained.
