2026-09-21 7 min read

SBA Loan Calculator

The SBA guarantee, guaranty fee and resulting payments for a business loan. Live calculator with worked steps, charts.

Calculator

Loan Amount Help

The amount you borrow, before fees are deducted.

SBA Loan Programme

Annual Interest Rate(%)

Loan Term(years)

years

Extra Months(months)

months

Payment Frequency

Advanced options (1)

SBA Guaranty Fee (% of guaranteed portion)(%)

This business & sba loans calculator runs on the standard amortisation model: interest is charged on the outstanding balance each month, and anything extra you enter is applied to principal immediately.

Results

Optimal

Monthly Payment

$4,576.96/month

Over 10 years.

SBA Guarantee Percentage

75.00%

$262,500 of the $350,000 is guaranteed.

SBA Guaranty Fee

$4,463

1.70% of the guaranteed portion.

Net Loan Proceeds After the Fee

$345,538

APR Including the Guaranty Fee

10.06%

Note Rate

9.75%

Total Interest Over the Term

$199,235

Programme Ceiling

$5,000,000

Within the programme ceiling.

All-In Cost of Credit

$203,698

Live results update as you type — currently showing monthly payment of $4,576.96 /month on 12 payments a year. Replace the defaults with your own quote for an exact comparison.

Visualizations

SBA Guarantee Split

262,500SBA guaranteed

87,500Lender retained

All-In Cost

Principal63%

Guaranty fee1%

Interest36%

Formula

The SBA guarantees a percentage of the loan and charges the lender a fee on that guaranteed portion. The borrower keeps the full amortisation at the note rate.

Guaranty fee = Guaranteed portion × fee % Guaranteed portion = Amount × guarantee %

Variables

Symbol	Name	Unit	Description
Amount	Loan amount	currency	Total amount financed
Guarantee %	SBA guarantee	percent	75%, 85% or 50% depending on programme and size
Fee	Guaranty fee	currency	Charged on the guaranteed portion

Explanation

This is how much of the loan is guaranteed, what the guaranty fee costs and what the resulting payments look like.

Step-by-Step Calculation

Follow each step to understand how the result is calculated from your inputs.

Step 1

Establish how much of the loan the SBA guarantees — this drives the fee.

Guaranteed portion = amount × guarantee %

Amount:$350,000

Guarantee:75%

Result: $262,500

Step 2

Apply the guaranty fee to the guaranteed portion only.

Fee = guaranteed portion × fee %

Fee rate:1.70%

Result: $4,462.50 fee

Step 3

Price the loan at the note rate, then reprice against net proceeds to see the true APR.

P = A × i ÷ (1 − (1 + i)^−n); APR on net proceeds

Intermediate: $4,576.96 /month over 120 payments

Result: 10.056% APR

Final Answer

$4,576.96

Worked Examples

See how the calculator works with different scenarios.

Scenario

The sba loan calculator run on the values above, showing the full calculation path rather than only the answer.

Inputs

Amount:350000

Rate:9.75

Years:10

Frequency:monthly (12 per year)

Calculation

1. Establish how much of the loan the SBA guarantees — this drives the fee. → $262,500 2. Apply the guaranty fee to the guaranteed portion only. → $4,462.50 fee 3. Price the loan at the note rate, then reprice against net proceeds to see the true APR. → 10.056% APR

Result

Monthly Payment: $4,576.96 /month

Interpretation

SBA 7(a) on $350,000 at 9.75% over 10 years: $4,576.96 /month, 75% guaranteed, $4,462.50 guaranty fee, APR 10.056%.

Understanding Your Result

Your Result: Monthly Payment: $4,576.96 /month

Typical range: Most 7(a) loans are 75% guaranteed (85% under $150,000) with a guaranty fee around 1.5%–3.5% of the guaranteed portion; express loans are 50% guaranteed with a $500,000 ceiling.

What This Means

This is how much of the loan is guaranteed, what the guaranty fee costs and what the resulting payments look like.

Why It Matters

SBA 7(a) on $350,000 at 9.75% over 10 years: $4,576.96 /month, 75% guaranteed, $4,462.50 guaranty fee, APR 10.056%.

Professional Interpretation

SBA 7(a) on $350,000 at 9.75% over 10 years: $4,576.96 /month, 75% guaranteed, $4,462.50 guaranty fee, APR 10.056%.

How this is calculated

The SBA guarantees a percentage of the loan and charges the lender a fee on that guaranteed portion. The borrower keeps the full amortisation at the note rate.

What drives the result

Commercial lenders look at the source of repayment first and the collateral second. Revolving facilities price on utilisation and committed balances, asset-based lines advance a percentage of eligible collateral, and government-guaranteed loans trade a fee for a longer term and a lower rate.

Recommendations

•Ask the lender for a full fee breakdown — packaging, servicing and closing fees sit outside the SBA guaranty fee.
•Compare a 7(a) loan with a conventional loan at the same term: the guaranty fee buys a lower rate and longer amortisation.

Educational Content

Introduction

Business credit is priced on structure as much as on rate: guaranty fees, advance rates against collateral, draw periods and annualised factoring costs all sit on top of the interest rate. These calculators put the whole facility — not just the note — into one view.

Concept Explanation

Applications

▸Comparing a term loan with a line of credit for a working-capital need

▸Sizing a borrowing base from receivables and inventory

▸Measuring the all-in cost of invoice factoring against a bank facility

▸Modelling the SBA guaranty fee and amortisation on a small-business loan

Benefits

•Shows the full cost of the facility including fees and unused-line charges
•Converts each collateral class into available borrowing power
•Reveals the cash-flow pattern across draw and repayment periods
•Makes government-guaranteed structures comparable with conventional credit

Limitations

•Advance rates, eligible collateral definitions and covenants vary by lender
•Financial covenants, reporting requirements and cross-default clauses are not modelled
•Personal guarantees and lien positions affect pricing beyond the numbers shown
•Business credit is underwritten on the business plan and management, not only on ratios

Best Practices

•Ask what happens to pricing if utilisation stays low for a quarter
•Model the facility at 80% of the borrowing base you think you have
•Compare the annualised cost of any alternative financing with a bank line before signing
•Check whether the guaranty fee can be financed or must be paid at closing

Common Misconceptions

Myth: The lowest rate is the cheapest facility

Truth: Commitment fees, servicing charges and collateral reporting can make a low-rate facility more expensive.

Myth: Government guarantees mean relaxed underwriting

Truth: The guarantee transfers risk to the agency; lenders still apply their own credit standards.

Practical Tips

•Ask for the fee breakdown in writing, including packaging, servicing and closing charges.
•Compare the all-in cost with a conventional loan at the same term before choosing the guaranteed route.

Common Mistakes

Assuming the guarantee covers the whole loan

Only the guaranteed portion is backed; the lender retains the rest of the risk.

Overlooking the programme ceiling

Amounts above the ceiling need a split structure with conventional lending.

Assumptions

This calculator makes the following assumptions to provide estimates:

Current programme fees and guarantee percentages: SBA fee schedules and guarantee levels change; confirm with the lender.

Limitations

Be aware of these limitations when using this calculator:

Limitation: Advance rates, eligible collateral definitions and covenants vary by lender

Limitation: Financial covenants, reporting requirements and cross-default clauses are not modelled

Limitation: Personal guarantees and lien positions affect pricing beyond the numbers shown

Limitation: Business credit is underwritten on the business plan and management, not only on ratios

Frequently Asked Questions

Answers to common questions about this calculator.

Who pays the guaranty fee?

The borrower pays it, but the lender collects and remits it. It is usually financed into the loan or paid at closing.

How is 504 different from 7(a)?

504 is a fixed-asset structure: a bank provides 50%, a certified development company provides 40% with an SBA-guaranteed debenture, and the borrower contributes 10%.

Who uses the sba loan calculator?

It is used by borrowers comparing business loan offers, by advisers checking a quote before a client signs, and by lenders and brokers sanity-checking a payment, ratio or fee structure. It sits in the Business & SBA Loans group of the Loans & Lending section of Atlascalcs.

How accurate is the sba loan calculator?

Every figure follows directly from the inputs using standard amortisation mathematics, so it is accurate to the quality of the values you enter. Lenders round payments and apply their own day-count conventions, so expect small differences against a formal statement or payoff quote.

How current are the rates and thresholds used here?

The calculator uses the figures you enter, so update the rate to your actual offer or current market quote. Ratio thresholds, poverty guidelines and programme rules reflect the conventions described in the references and change periodically.

Does rounding change the results?

Every calculation runs on full precision and rounds only for display. Lenders round payments to the nearest cent or dollar, so expect a small difference between these figures and a formal statement or payoff quote.

Should I use the payment or the total cost to compare offers?

Use the payment to judge cash flow and the finance charge or APR to judge cost. When two offers differ on both, the all-in cost over the period you expect to hold the loan is the decisive measure.

Can I use this calculator for a business or commercial loan?

Yes. The payment, amortisation, ratio and cost calculators apply the same amortisation mathematics to commercial loans; the difference is in the fees, covenants and collateral rules, which you should enter explicitly.

What information should I have ready before applying?

Your exact rate and term, the fee schedule, any required add-ons, and your gross income and existing monthly obligations. With those five numbers every figure on this page can be tied back to a lender quote.

Related Calculators

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Related Guides

Deepen your understanding with these educational resources.

Loan repayment and amortisation guide

How payments split between interest and principal, and how to read a schedule.

Borrowing cost and APR explained

Rate versus APR, points, fees and the cost of a longer term.

Qualifying for credit

The ratios lenders use, and how to improve each one before applying.

Glossary

Technical terms used in mortgage calculations explained in plain language.

SBA guaranty fee: A fee the SBA charges the lender for guaranteeing a portion of a small-business loan.
APR (Annual Percentage Rate): The yearly cost of credit expressed as a rate, including interest and most upfront finance charges.
Amortisation: Repaying a debt through a schedule of payments that gradually shifts the split from interest to principal until the balance reaches zero.
Origination fee: A charge levied by the lender for arranging the loan, usually a percentage of the amount financed.

Authoritative References

Trusted sources and standards referenced by this calculator.

Consumer Financial Protection Bureau — Loan options and disclosures Consumer Financial Protection Bureau — What is a debt-to-income ratio? Federal Reserve — Consumer credit (G.19) statistical release Federal Reserve — Consumer credit and leasing guides U.S. Small Business Administration — Loan programmes Federal Student Aid — Income-driven repayment plans Federal Student Aid — Public Service Loan Forgiveness Federal Trade Commission — Consumer credit guidance

Applicable Standards

Level-payment (simple-interest) amortisation, payments assumed in arrearsAPR computed by discounting the actual payment stream to net proceedsDebt ratios computed on gross income for lender comparisonsMoney rounded for display only; all calculations run at full precision

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Page Information

Last Updated:

2026-09-21

Version:

2.0.0

References:

License:

Free to use for educational and professional purposes.