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SBA 7(a) loan cost calculator

Written and reviewed by the Cost of Financing editorial team

Last reviewed:

SBA 7(a) loans are the cheapest widely available option for most small businesses, but the true cost includes a guarantee fee and closing costs on top of interest. This tool applies the 2026 rate caps and fee tiers to your loan size and term.

Educational estimates only. This page is general information, not financial advice. Cost of Financing does not offer, broker or arrange loans, and we accept no lender sponsorships, referral fees or lead payments.

Your loan

$
years

Working capital and equipment usually run 7 to 10 years. Real estate can run to 25.

Rate type

Prime rate used: 7.00 percent as of 16 September 2026. Your cap at this size is 11.50%.

points

Strong borrowers with collateral often price below the maximum. Weaker files price at it.

%

Packaging, appraisal, environmental, title, filing and legal. Often 1 to 3 percent.

Monthly payment

$4,625 to $4,921

Rate range 10.00% to 11.50% over 10 years.

Total cost of the loan

$216,058 to $253,626

Interest plus guarantee fee plus closing costs, excluding principal.

Line items

Interest rate range

variable rate, 2026 cap 11.50%

10.00% to 11.50%

Total interest over the term

$205,033 to $240,501

SBA guarantee fee

3 percent of the guaranteed portion, assumed 75 percent

$7,875 to $7,875

Closing and packaging costs

$3,150 to $5,250

Total cost excluding principal

$216,058 to $253,626

Principal repaid

$350,000

Compare this against other products

Effective APR is the only fair way to compare. These pages show approximate 2026 ranges for the main alternatives.

How we estimate this

We start from the published 2026 maximum rates. The prime rate used throughout the site is 7.00 percent as of 16 September 2026. Variable rate caps are 13.50 percent for loans up to $50,000, 13.00 percent up to $250,000, 11.50 percent up to $350,000 and 10.00 percent above that. Fixed rate caps start at 15.00 percent for the smallest loans and step down to 12.00 percent above $250,000.

The high end of our payment range assumes you price at the cap. The low end applies the discount you enter, floored at a realistic spread over the base rate stated above, because very few lenders price an SBA 7(a) loan close to that base rate.

Guarantee fees

  • Loans with a maturity over 12 months: roughly 2 percent of the guaranteed portion up to $150,000.
  • 3 percent from $150,000 to $700,000.
  • 3.5 percent above $700,000, with an extra 0.25 percent on the portion above $1 million, so a blended 3.5 to 3.75 percent.
  • Short term loans of 12 months or less carry a much smaller fee, about 0.25 percent.
  • Fees are waived or reduced on some loans, including certain small manufacturer programmes and veteran programmes. Check current SBA notices for the year you close.

We assume a 75 percent guaranteed portion, which is standard for loans above $150,000. Smaller loans are often guaranteed at 85 percent, which raises the fee base slightly. SBA fees are updated each 1 October and we review these figures against the current SBA schedule.

What is not included

  • Prepayment penalties, which apply to loans with terms of 15 years or more.
  • Ongoing servicing fees charged to the lender, which are sometimes passed through.
  • Life insurance assignments, appraisals on unusual collateral and franchise fees.

Read the full methodology for sources and review dates.

Educational estimates only. This page is general information, not financial advice. Cost of Financing does not offer, broker or arrange loans, and we accept no lender sponsorships, referral fees or lead payments.