There are three main factors used to calculate your SBA loan payment: loan amount, interest rate and loan term. Here’s how each factor breaks down:
Loan amount
Using an SBA loan calculator to figure out how much money you can afford to borrow is the first step in determining the monthly payments. SBA loans, specifically the popular SBA 7(a) loans, typically have a maximum amount of $5 million, providing business owners with the ability to secure a large amount of funding for their business. SBA 504 loans, which are used to purchase real estate and other fixed assets, extend to $5.5 million.
You can play around with different borrowing amounts in the “loan amount” section of the calculator to see how different balances will affect your monthly payment. However, keep in mind that it’s a good idea to only borrow as much as you need to avoid taking on too much debt and to keep your monthly payment as low as possible.
Interest rates
SBA loan interest rates can be negotiated between the lender and the borrower. However, the SBA sets certain maximums to keep these loans affordable. While the rates for SBA 504 loans typically amount to 3% of the amount borrowed, the rates for SBA 7(a) loans are tied to the prime rate, which fluctuates over time. Here’s where the rates currently stand:
Fixed interest rates
| Loan amount | Maximum interest rate |
| $0 - $25,000 | 16% |
| $25,001 - $50,000 | 15% |
| $50,000 - $250,000 | 14% |
| Over $250,000 | 13% |
Variable interest rates
| Loan amount | Maximum interest rate |
| $50,000 or less | 14.5% |
| $50,001 to $250,000 | 14% |
| $250,001 to $350,000 | 12.5% |
| Greater than $350,000 | 11% |
*Maximum interest rates calculated based on the current prime rate and SBA maximums. The current prime rate is 8% as of November 2024.
If you already have a loan offer in hand, consider plugging the annual percentage rate (APR) into the calculator to see how much you could owe on a monthly basis. A simple interest rate can also be plugged in based on the amount you plan to borrow, but be aware that these figures don’t include any fees attached to the loan, so they may not give you the most accurate picture of the costs.
Loan term
The loan term you choose will determine how long you have to pay back the loan. As a rule of thumb, longer loan terms tend to mean lower monthly payments. However, you’ll likely pay more in interest charges over the life of the loan. Shorter loan terms, on the other hand, can help you save on interest overall, but your monthly out-of-pocket cost will likely be more expensive.
Most SBA 7(a) loans allow for terms of up to 10 years, except if the loan is being used to finance real estate, which can extend to 25 years. SBA 504 loans come with maturity terms of 10, 20 or 25 years.
Use our loan calculator to see how different term lengths can affect your monthly payment and get a sense of which loan term could be the best fit for you.
