SBA Loan Calculator

How it is calculated

The guarantee fee is added to the loan, then a standard fixed-rate amortising payment is worked out. fee = loan_amount × fee% ÷ 100, financed = loan_amount + fee, r = annual_rate ÷ 100 ÷ 12, n = term_years × 12 and payment = financed × r × (1 + r)n ÷ ((1 + r)n − 1). At a 0% rate the payment is simply financed ÷ n. Total paid is payment × n, and total interest is total paid minus the financed amount, so the fee itself is not counted as interest. The fee percentage is applied to the whole loan, so enter an effective rate on the full amount; the actual SBA fee schedule depends on loan size and program. A fee above 100%, a negative rate or a zero loan amount or term shows no result. The rate is fixed and annual, with monthly payments; closing costs and variable rates are not modelled.

Common mistakes

• Leaving out the guarantee fee when comparing with another loan. The fee raises the balance you repay, so compare total paid, not just the interest rate.
• Entering the fee as dollars instead of a percentage. The field is a percentage of the loan amount, so $7,500 would have to be typed as 3; a value above 100 shows no result.
• Entering the term in months. The field is in years, so a 120-month term is 10.
• Assuming the official fee applies to the full amount. The real SBA fee is normally quoted on the guaranteed portion and depends on loan size, so convert it to an effective percentage of the whole loan first.
• Expecting the result to cover everything. Closing costs, insurance and a variable rate that resets over time are not included, so the real payment may differ.