Business Loan Calculator Estimate payments, compare SBA vs. conventional loans, model cash flow, and avoid pitfalls — wit...
Business Loan Calculator
Estimate payments, compare SBA vs. conventional loans, model cash flow, and avoid pitfalls — with 2025 lender rules and benchmarks.
Monthly Payment**:
$$PMT = P \times \frac{r(1+r)^n}{(1+r)^n - 1}$$
Example** ($100K @ 10.5%, 5 yrs): • **$2,149/mo**, **$28,940 interest** • +1% fee → **10.68% effective APR**
SBA 7(a) Fees (2025)**
- ≤$150K: 2.75% guarantee fee
- $150K–$700K: 3.375%
- >$700K: 3.75% on first $700K
DSCR Rule** = $$\frac{\text{Net Operating Income}}{\text{Total Debt Service}}$$ • ≥1.25 = ✅ Lender approval • <1.0 = ❌ High risk
⚠️ **Avoid These Traps**:
- Balloon payments** — $10K/mo for 59 mos + $50K due at 60
- Prepayment penalties** — 3–5% if paid early (common in CRE)
- Unlimited personal guarantee** — puts home/401k at risk
- “SBA” scams** — non-SBA lenders charging 18% + $10K “processing”
✅ Smart Moves**:
- Verify lenders on SBA Lender Directory
- Aim for **DSCR ≥ 1.25** — lenders use this more than credit score
- Use SBA 504 for real estate (20-yr, fixed 6.5–7.5%)
| Loan | Rate | $100K, 60-Mo | Fees |
|---|---|---|---|
| SBA 7(a) | 8.5–10.5% | $2,055–$2,149 | 2.75% guarantee |
| Conventional | 9.2–13.5% | $2,085–$2,291 | 1–3% origination |
| Online Lender | 10–22% APR | $2,125–$2,850 | $500–$3K flat |
📉 Real-World Examples**:
- $150K SBA @ 9.75%: **$1,962/mo**, **$85,440 interest**, **$2,250 fee**
- Refi $80K @ 12% → 9%: **$182/mo savings**, **$21,840 interest saved**
- DSCR: $8K income / ($3K + $1.96K debt) = **1.6x** → ✅
➡️ Standard Loan
“$100K equipment loan @ 10.5% for 5 yrs — payment?” → **$2,149/mo**
➡️ SBA 7(a)
“$150K SBA @ 9.75% — effective APR with fees?” → **9.89%**
➡️ DSCR
“$8K net, $3K debt, $1,962 new payment — safe?” → **1.6x ✅**
➡️ Refinance
“$80K @ 12% → 9% — breakeven in 14 mos, save $21,840”
Note: Uses exact amortization math. SBA fees per 2025 SBA SOP. Assumes standard repayment (no balloons).