# What will my SBA loan cost?

Computes the monthly payment, the SBA guaranty fee for fiscal year 2027, the total cost, and the APR of an SBA 7(a) term loan.

- Page: https://www.acalculator.org/finance/sba-loan-calculator
- JSON spec: https://www.acalculator.org/finance/sba-loan-calculator.json
- Version: 3e0a9ea8fe7d

## Default answer

Example with the default inputs (Loan amount $350,000.00, Interest rate 10.5%, Loan term (years) 10, Manufacturer, food supply chain, or rural business No, Other fees $0.00, Loan start date September 30, 2026) on the example date Wednesday, September 30, 2026: A $350,000.00 SBA 7(a) loan at 10.5% over 10 years costs $4,722.72 a month; the SBA guaranty fee is $7,875.00 and the APR is 11.05%.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| amount | Loan amount | The gross 7(a) loan amount, the SBA-guaranteed and unguaranteed parts together. |
| rate | Interest rate | The fixed yearly rate. The monthly rate is this ÷ 12. |
| years | Loan term (years) | The maturity in years: up to 10 for working capital and equipment, up to 25 for real estate; 0.5 is 6 months. |
| relief | Manufacturer, food supply chain, or rural business | In fiscal year 2027 the SBA charges no upfront fee on loans of $700,000 or less to manufacturers, listed food supply chain businesses, and businesses in rural areas. |
| other | Other fees | Other up-front fees in dollars (packaging, closing, legal), paid out of the loan. |
| start | Loan start date | The day the loan starts. The first payment is one month later. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| payment | Monthly payment | The level monthly payment. |
| fee | SBA guaranty fee | The upfront fee on the SBA-guaranteed portion, at the fiscal year 2027 rates. |
| guaranteed | SBA-guaranteed portion | 85% of a loan of $150,000 or less, 75% of a larger loan. |
| feeShare | Guaranty fee as a share of the loan | The guaranty fee divided by the loan amount. |
| apr | APR | The yearly rate at which the payments repay the loan minus all fees, so the fees count as a cost. |
| payments | Number of payments | How many monthly payments repay the loan. |
| interest | Total interest | All the interest over the term. |
| fees | All fees | The guaranty fee plus the other fees. |
| cash | Loan minus fees | The loan amount minus all fees: the cash left when the fees come out of the loan. |
| cost | Cost of the loan | The interest plus all the fees. |
| paid | Total of payments | The loan amount plus all the interest. |
| payoff | Last payment | The month of the last payment, when a start date is given. |

## Method

payment = L × r ÷ (1 − (1 + r)^−n), with r = rate ÷ 1200 and n the months; guaranty fee = fee rate × the guaranteed portion (85% of L up to $150,000, 75% above), by the FY 2027 table; APR = 12 × j, where the payments discounted at j add up to L minus the fees.

## Assumptions

- The rate is fixed; interest is the balance × the yearly rate ÷ 12 each month, and the loan is repaid by equal monthly payments.
- The guaranty fee uses the SBA’s fiscal year 2027 rates for loans approved October 1, 2026 to September 30, 2027.
- All fees are paid at closing, in cash or out of the loan, and count as a cost in the APR.
- The lender’s annual service fee (0.55% of the guaranteed balance) is paid by the lender and may not be passed on, so it is not included.
- Values are not rounded to the cent between months; only the display is rounded.

## Worked examples

1. amount = $350,000.00, rate = 10.5%, years = 10, relief = no, other = $0.00 gives guaranteed = $262,500.00, fee = $7,875.00, payment = $4,722.72, interest = $216,726.99, apr = 11.051363%, feeShare = 2.25%. Source: SBA Information Notice 5000-881797 (3% of the guaranteed portion for $150,001 to $700,000).
2. amount = $2,000,000.00, rate = 9%, years = 25, relief = no, other = $5,000.00 gives guaranteed = $1,500,000.00, fee = $53,750.00, fees = $58,750.00, payment = $16,783.93, apr = 9.368798%. Source: SBA Information Notice 5000-881797 (3.5% up to $1,000,000 of the guaranteed portion plus 3.75% above it).
3. amount = $100,000.00, rate = 11%, years = 1, relief = no, other = $0.00 gives guaranteed = $85,000.00, fee = $212.50, payments = 12, payment = $8,838.17, apr = 11.403259%. Source: SBA Information Notice 5000-881797 (0.25% of the guaranteed portion for 12 months or less).
4. amount = $600,000.00, rate = 10%, years = 10, relief = yes, other = $0.00 gives fee = $0.00, apr = 10%, payment = $7,929.04. Source: SBA Information Notice 5000-881797 (0% for loans of $700,000 or less to manufacturers, food supply chain, and rural businesses).

## FAQ

### How is an SBA loan payment calculated?

SBA 7(a) term loans are repaid by equal monthly payments: payment = L × r ÷ (1 − (1 + r)^−n), where L is the loan, r the yearly rate ÷ 12, and n the number of months. A $350,000 loan at 10.5% over 10 years costs $4,722.72 a month.

### How much is the SBA guaranty fee?

For fiscal year 2027 (loans approved October 1, 2026 to September 30, 2027) and a maturity over 12 months, the fee is 2% of the guaranteed portion for loans of $150,000 or less, 3% for $150,001 to $700,000, and 3.5% of the guaranteed portion up to $1,000,000 plus 3.75% above that for larger loans. Loans of 12 months or less pay 0.25%.

### How much of an SBA 7(a) loan does the SBA guarantee?

85% of a loan of $150,000 or less and 75% of a larger loan. The fee is charged on that guaranteed portion, not on the whole loan, so the $350,000 loan above pays 3% of $262,500, which is $7,875.

### Which businesses pay no guaranty fee?

In fiscal year 2027 the SBA charges no upfront fee on loans of $700,000 or less to manufacturers (NAICS 31 to 33), listed food supply chain businesses, and businesses located in rural areas. SBA Express loans to veteran-owned businesses also pay no upfront fee.

### Can I add the guaranty fee to the loan?

The fee is due at closing; the SBA lets it be paid out of the loan proceeds. Either way it is a cost of borrowing, so this page counts it in the APR and the cost of the loan, and figures the payment on the loan amount you enter.

### What SBA loan term can I get?

The maturity depends on the use: up to 10 years for working capital and most equipment, and up to 25 years for real estate. Enter the term your lender offers.

### Is the example rate the SBA rate today?

No. The page shows no live rates, and SBA 7(a) rates move with the prime rate. The default rate is an example; enter the rate your lender quotes.

## Sources

- U.S. Small Business Administration, Information Notice 5000-881797, 7(a) Fees Effective October 1, 2026 for Fiscal Year 2027 (published September 3, 2026). https://legacy.sba.gov/document/information-notice-5000-881797-fy-2027-7a-program-fees
- Small Business Act, 15 U.S.C. 636(a)(2)(A) (guaranty of 85% for loans of $150,000 or less and 75% above) and 636(a)(3)(A) (loan limit). https://www.law.cornell.edu/uscode/text/15/636
- U.S. Small Business Administration, 7(a) loans: terms, rates, and fees. https://www.sba.gov/funding-programs/loans/7a-loans
- Regulation Z, 12 CFR 1026 appendix J, Annual percentage rate computations for closed-end credit transactions (actuarial method). https://www.consumerfinance.gov/rules-policy/regulations/1026/j/