Free tool · SBA 7(a)
SBA Loan Calculator for Buying a Business
Estimate your monthly payment, down payment, and total interest on an SBA 7(a) loan used to acquire a business. Adjust the price, down payment, rate, and term to match your deal.
Defaults reflect typical SBA 7(a) acquisition terms (≈10% down, up to a 10-year term, a variable rate tied to prime). Estimate only — not a loan offer or financial advice.
How SBA 7(a) loans work for business acquisitions
The SBA 7(a) program is the most common way buyers finance a small business acquisition in the United States. The loan is made by a bank or approved lender and partially guaranteed by the Small Business Administration, which lets lenders extend terms a conventional acquisition loan rarely would: longer amortization, lower down payments, and no balloon.
For an acquisition, expect a down payment around 10%, a term up to 10 years, and a variable rate tied to the prime rate. The calculator above uses those defaults, but your lender's actual quote is what matters, so plug in their rate and term for a realistic payment.
How to use this calculator
Enter the purchase price, your planned down payment, the interest rate your lender quoted, and the loan term. The result updates live: your estimated monthly payment, the financed loan amount, total interest over the life of the loan, and the total of all payments. Compare a few scenarios, a larger down payment or a shorter term both lower total interest, to see what your monthly obligation would look like.
Want to understand the full acquisition-financing picture, including how seller financing stacks with an SBA loan? Read our guides on using an SBA loan to buy a business and buying an existing business.
Frequently asked questions
SBA 7(a) acquisition loans typically require at least 10% equity injection from the buyer. Some of that can sometimes come from seller financing on standby, but a 10% minimum down payment is the common baseline.
Business acquisition loans under the 7(a) program are generally amortized over up to 10 years. If significant commercial real estate is included, the term can be longer, blended toward the real estate's longer schedule.
Rates are negotiated between the borrower and lender but are capped by the SBA. They are usually variable and tied to the prime rate plus a spread, so your actual rate moves with prime. Use your lender's quoted rate in the calculator for an accurate payment.
The maximum 7(a) loan amount is $5 million. For larger acquisitions, buyers typically combine an SBA loan with seller financing, equity, or other debt.
Looking for a business to buy?
Register your acquisition criteria and we will match you privately to businesses that fit, including deals before they reach the open market.
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