SBA loan calculator for buying a business
Enter the price and how the deal is split between your cash, a seller note and an SBA 7(a) loan. See each payment, the total debt service, and whether the business covers it (DSCR) after paying you a salary.
The deal (example values: replace them with the lender's terms)
Loan terms
Can the business carry it?
The capital stack and its payments
| Piece | Amount | Rate | Term | Monthly | Yearly |
|---|---|---|---|---|---|
SBA guarantee fee: not included. It is a percentage of the guaranteed part of the loan and changes with the loan size and the SBA's fiscal year; see the current table on the SBA 7(a) loans page. Lenders usually finance it into the loan.
DSCR = (SDE − your salary) ÷ yearly loan payments. Many lenders look for at least 1.25. Between 1.0 and 1.25 is tight. Below 1.0 the business cannot pay its loans from its own profit. The SBA loan here is the price plus working capital, minus your equity and the seller note; the SBA also lets closing costs and the guarantee fee be financed, which this tool leaves out.
How the pieces fit together, and what changed in the SBA rules in 2025: How to buy a business and How to use an SBA loan to buy a business. The official program terms are on the SBA's 7(a) loans page. For a seller note on its own, including interest-only and standby periods, use the seller note calculator.
Questions people ask
How much do I need to put down on an SBA loan to buy a business?
The SBA 7(a) program requires an equity injection on a change of ownership; the current rules and the lender's own policy set the amount and what part of it can be a seller note on standby. Many buyers see 10 percent of the total project cost quoted, which is why this calculator starts there. Check the SBA's 7(a) page and ask the lender before you count on a figure.
What DSCR do SBA lenders want?
Most lenders look for a debt service coverage ratio of at least 1.25: for every $1.00 of yearly loan payments the business should earn $1.25 after paying the buyer a salary. The exact bar is the lender's.
How is the SBA guarantee fee calculated?
The guarantee fee is a percentage of the guaranteed part of the loan that changes with the loan size and the SBA's fiscal year. This calculator leaves it out and links to the SBA's fee page instead of printing a number that goes stale.
Can a seller note count as part of my equity?
Sometimes, if it is on full standby for a period the SBA sets and the lender agrees. The rules changed in 2025; read our post on the SBA 7(a) rule changes and confirm with the lender.
Want a second pair of eyes on the numbers?
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Book a free callEstimates only, with level monthly payments, a fixed rate and no closing costs, guarantee fee, packaging fee or taxes; SBA 7(a) rates are usually variable and lenders set their own terms. Acquisitions.com is an advisory firm, not a broker-dealer or a lender; financing comes from third-party lenders and investors. Not financial advice.