SBA 7(a) Loan Calculator

A small business loan, like the SBA 7(a) loan, can be exactly the nudge you need to grow your organization -- but no matter how you spin it, borrowing for your business is a big decision.

That's why we created our business loan calculator. Enter different loan amounts, interest rates, and terms in years to get a clearer picture of how much you'll actually have to pay.

If you'd rather skip the calculator and get a free, custom quote, click the button at the top of the page.

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Business Loans: Breaking Down the Basics

What is amortization?

Like most accounting terms, amortization is a big, scary sounding word with a surprisingly easy definition. Simply put, amortization is the process of spreading out your loan payments over time.

When you look at an amortization calendar (also called an amortization table), you’ll see what your principal payment amount will be each month of your loan, what your interest payment will be each month, and how your total loan balance will change month after month.

What is the difference between principal and interest?

The principal amount of your loan is the total amount of money that you’ve borrowed. Interest, on the other hand, is the fee you pay to borrow that amount. It’s a set percentage of the loan amount that you agreed upon when you took the loan.

Interest will continue to compound on your loan until the entire principal balance is paid off. For each payment that you make toward your loan, a portion will go toward your principal and a portion will go toward your interest.

What is an SBA 7(a) loan?

The SBA in SBA 7(a) stands for the Small Business Administration, a federal department that helps encourage and subsidize new small businesses. The SBA 7a loan is one of the most popular commercial loans offered by the SBA, and is geared toward new borrowers and those borrowers who may be considered “weak” in their financial position.

If you qualify for an SBA 7(a) loan, the SBA will partially fund your loan through a private lender. The thought is that this incentivizes lenders to fund borrowers who they might not want to take the risk on otherwise.

Who qualifies for an SBA 7(a) loan?

As with all loans, eligibility is ultimately decided on a case by case basis. However, there are some specifics you’ll definitely need to prove. These include:

  • An intention to do business in the United States

  • A demonstrated need for funding

  • A legitimate business proposal

  • A previous effort to fund your business through personal assets or other financial resources

In addition, interested SBA 7(a) borrowers will have to show that they are interested in opening a small business, as defined by SBA’s size standards.

What is the maximum SBA 7(a) loan amount?

The most that you can borrow for your small business with an SBA 7(a) loan is $5 million. If you borrow the maximum, the SBA will be funding $3,750,000 of the loan and  your private lender will cover the rest.

Is a down payment required for an SBA 7(a) loan?

Yes. There is a required down payment of 10% of your total loan amount for an SBA 7(a) loan, however your individual lender may require more.

How can an SBA 7(a) loan be used?

Your lender will fill you in on exactly how you can and cannot use your SBA 7(a) loan, but generally the loan is available for a wide variety of small business-related expenses. These include:

  • Start-up costs

  • Buying a business

  • Commercial real estate

  • Working capital

  • Equipment and supplies

  • Land

  • Repairing existing capital

  • Refinancing debt

Some lenders are more strict than others about how SBA 7(a) loans can be used. Be sure to ask a lot of questions when choosing a lender, including questions about whether the loan can fund each individual purpose you intend to put it towards.

Learn more about uses for SBA 7(a) loans here.

How does’s Loan Calculator work?

Math, of course! We’ll determine your monthly payment and amortization schedule based on the total amount that you’re borrowing, the interest rate that you agreed upon for your loan, and the term of your loan.

In addition to showing you your monthly payment, the calculator will also break down for you how much of each payment will go toward principal and interest, and how your balance will change with each payment.

How does a commercial loan differ from a traditional loan?

When you get a traditional loan—say, a loan to buy a house—the loan covers the purchase of the property only. A commercial loan, on the other hand, funds more than just your basic real estate. You can use it to purchase supplies, build up your inventory, and cover your start-up costs, among other things. Differences also exist in how your loan is appraised and approved.

Where can I get a free SBA 7(a) loan quote?

We’re committed to make it easy for individuals to find out how much they might be approved to borrow with an SBA 7(a) loan. Get a quote here, answer a few questions, and we’ll not only give you an estimate, we’ll also point you in the direction of qualified lenders. It’s free to use and there is no obligation required.

How can I speed up the SBA 7(a) approval process?

In a hurry? Look for either an SBA Preferred Lender or an SBA Express Lender. Both have the power to streamline the loan process and get you the funding that you need faster. Check out our post on “How to Get Your SBA Loan Approved Faster” for all the details that you need to know.

We’re here to help you every step of the way. If you have questions related to the SBA 7(a) loan or the SBA loan approval process, we invite you to reach out to so that we can help. We’re happy to answer any questions that you may have.