How the SBA loan calculator works
Payment uses the standard amortizing-loan formula: payment = P × i ÷ (1 − (1 + i)^−n), where i is the monthly rate and n the number of months.
Fees: enter the upfront fee your lender quotes. Program fees change, so we do not assume one. Choose whether it is financed into the loan.
Max loan at target DSCR: we divide your cash flow by the target DSCR to get the most you could spend on debt each year, then work back to the loan amount at your rate and term.
How to read the result
- The amortization table shows how much of each year’s payments goes to interest versus principal.
- If your planned loan is above the max loan figure, the deal is likely to need more equity, a seller note on standby, or a lower price.
- Variable-rate loans change payments over time; rerun the tool with a higher rate as a stress test.
Questions
Does this reflect current SBA rules?
No rules are built in. Loan terms, rate caps, fees and equity requirements change and depend on the lender. Confirm current terms with an SBA lender.
Is the rate fixed?
The calculator assumes a fixed rate for the whole term. Many acquisition loans are variable; stress test with higher rates.
How much down payment do I need for an SBA loan to buy a business?
Under SBA SOP 50 10 8.1 (effective 1 October 2026), a complete change of ownership needs buyer equity of at least 10% of total project costs: the price plus closing costs, working capital and other uses. A seller note on full standby for the life of the loan, together with any minority investor equity, can cover no more than half of that. Lenders may ask for more.
What DSCR do SBA lenders want?
Each lender sets its own minimum. Use the target DSCR input to test your deal at the level your lender quotes; many acquisition lenders look for coverage around 1.25x or higher after a reasonable owner salary.
The Acquisition Deal Kit
Editable files for a live deal: a 150-item diligence request list, an SDE add-back workbook, an SBA loan and DSCR model, an annotated LOI and a closing plus first-100-days checklist.
Educational content, not advice. Bootstrapper.com publishes general information for education. It is not legal, tax, accounting, lending or investment advice and does not consider your circumstances. Calculator outputs are illustrative estimates. Rules, rates and programs change; confirm details with qualified professionals before making decisions.
Formulas are simplified and tested in an open test suite. Spotted an error? Email [email protected].