SBA Loan Calculator
- Principal
- Interest
- Guarantee fee
The guarantee fee is $7,875.00 on top of the payments. Many borrowers add it to the loan; if you do, the payment rises slightly.
How the SBA loan calculation works
Monthly payment, total interest and the upfront guarantee fee on an SBA 7(a) loan.
The payment uses the standard amortization formula
Payment = loan × r ÷ (1 − (1 + r)^−n), with r the yearly rate ÷ 12 and n the months. $350,000 at 10.5% over 10 years is $4,722.72 a month.
The SBA guarantees part of the loan
On 7(a) loans the SBA guarantees 85% of loans up to $150,000 and 75% of larger ones (50% on SBA Express). On $350,000 that's $262,500.
The guarantee fee is a percent of the guaranteed part
It is charged once, at closing. A $350,000 loan falls in the FY2027 3% band, so the fee on the $262,500 guaranteed portion is $7,875. The SBA resets these fees each fiscal year (starting 1 October), so check the current notice.
Longer terms lower the payment but raise the interest
The same $350,000 over 25 years drops to $3,304.64 a month but costs $641,390.79 in interest instead of $216,726.99.
Worked example. A $350,000 SBA 7(a) loan at 10.5% for 10 years costs $4,722.72 a month. Interest over 120 payments is $216,726.99. With 75% guaranteed and a 3% fee, the guarantee fee is $7,875, so you pay back $574,601.99 in total.
SBA Loan FAQ
How are SBA loan payments calculated?
Like any amortized loan: the yearly rate is divided by 12 and the balance is paid off in equal monthly payments over the term. Variable-rate 7(a) loans recalculate the payment when the rate changes.
What is the SBA guarantee fee?
A one-time fee the SBA charges the lender for guaranteeing part of the loan, which is normally passed on to you. It is a percent of the guaranteed portion and depends on loan size, term and fiscal year. The lender also pays the SBA a yearly service fee (0.55% of the guaranteed balance in FY2027), which it may not pass on to you.
What is the maximum term on an SBA 7(a) loan?
The SBA rule is 10 years or less, unless the loan finances real estate or equipment with a useful life over 10 years; the maximum is 25 years, including extensions. Working capital loans therefore run up to 10 years. Your lender sets the term within those limits.
What are SBA 7(a) loan interest rates?
Lenders set the rate, but the SBA caps variable 7(a) rates at the base rate (usually prime) plus 6.5% for loans of $50,000 or less, 6% for $50,001–$250,000, 4.5% for $250,001–$350,000 and 3% above $350,000. With the bank prime rate at 7.00% in the Federal Reserve H.15 release of 19 Oct 2026, the caps are 13.5%, 13%, 11.5% and 10%. Fixed-rate maximums are published separately by the SBA.
What are the SBA 7(a) guarantee fees for FY2027?
For loans approved from 1 October 2026 to 30 September 2027 with terms over 12 months: 2% of the guaranteed portion on loans of $150,000 or less, 3% on $150,001–$700,000, and 3.5% on loans over $700,000, plus 3.75% on any guaranteed amount above $1 million. Loans of 12 months or less pay 0.25%. Manufacturers, certain food supply chain businesses and rural businesses pay 0% on loans of $700,000 or less.
How do I calculate the guarantee fee on a loan over $1 million?
Split the guaranteed portion at $1 million. On a $1,500,000 loan with 75% guaranteed ($1,125,000), the fee is 3.5% of $1,000,000 plus 3.75% of $125,000: $35,000 + $4,687.50 = $39,687.50. Enter about 3.53% as the fee here to match.
Can I use this as an SBA 504 loan calculator?
For a single payment, yes: enter the amount, rate and term of the portion you're estimating. 504 loans split into a bank loan, a CDC loan and your down payment, each with its own rate and fees, so the SBA 504 loan calculator models that split.
Can the guarantee fee be added to the loan?
Often yes. Add the fee to the loan amount and set the fee to 0 to see the payment with the fee financed.
Sources: SBA: 7(a) loans · SBA: Terms, conditions and eligibility · SBA Information Notice 5000-881797: FY2027 7(a) fees · eCFR 13 CFR 120.212 and 120.214: 7(a) maturities and maximum variable rates · Federal Reserve H.15: bank prime rate, 19 Oct 2026