Small Business Loan SBA Payment Estimator

Standard amortization applied to an SBA-style term loan

A $250,000 loan at 11.5% over a 10-year term carries a monthly payment of $3,514.89. Over the full term, total interest comes to $171,786.33 -- nearly 69% of the original loan amount -- for total payments of $421,786.33.

That interest share is a direct function of the 11.5% rate and 10-year term: SBA-backed loans typically carry lower rates than unsecured business credit specifically because the government guaranty reduces the lender's risk, but the rate is still meaningfully higher than a conventional mortgage rate over a shorter term.

The same $250,000 amortized over a longer term (SBA 7(a) loans can run up to 25 years for real estate) would lower the monthly payment substantially at the cost of even more total interest paid -- run the term field up to compare.

What an actual SBA loan quote adds on top

Amortizing term only. Guaranty fees and variable resets are not included. Not an SBA quote. SBA loans carry an upfront guaranty fee (typically 2-3.75% of the guaranteed portion, depending on loan size) that isn't in this payment math, and many SBA loans use a variable rate tied to prime that resets periodically rather than the fixed rate assumed here.

This models a standard amortizing schedule; real SBA underwriting also considers collateral, personal guaranty requirements, and use-of-funds restrictions that don't factor into a payment calculation at all.

If a shorter-term, higher-rate bridge loan is being considered as an alternative for speed, compare its true annualized cost on the Hard Money Loan Interest Calculator.

Sizing the loan against the business

A $3,514.89 monthly payment only makes sense against the cash flow it's financing -- if this is a hiring or equipment decision, compare it to the Employee Turnover Cost Estimator or Equipment Depreciation Calculator depending on what the loan is funding.

Frequently Asked Questions (FAQ)