Four calculators in one private tool. Run a monthly payment and amortization, compare SBA 7(a) to a conventional term loan, check your DSCR, and estimate your personal guarantee exposure. Everything runs in your browser. No email, no signup, no saving.
Free Interactive Tool
Pick a Calculator to Begin
Switch tabs at any time. Inputs on one tab do not carry over to the others, so you can model different scenarios side by side. We share our opinions on tradeoffs throughout, but the numbers you see are yours alone.
Monthly Payment
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Principal + interest
Total Interest
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Over full loan term
Total Cost
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Principal + interest
Number of Payments
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Months
First 12 months of amortization
Month
Payment
Principal
Interest
Balance
Last 12 months of amortization
Month
Payment
Principal
Interest
Balance
Our opinion: A shorter term saves significant interest but raises your monthly payment and can crush your DSCR. If cash flow is tight, we believe a longer term with a plan to prepay principal voluntarily often gives you the best of both worlds, provided your loan has no prepayment penalty. Always confirm prepayment terms in writing before signing.
SBA 7(a) Loan
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Estimated rate ceiling
Rate capped at Prime + 2.75% (loans above $350K; smaller loans may be Prime + 3.00% to +6.50%)
Term: up to 10 years (working capital/equipment) or 25 years (real estate)
Estimated monthly payment: -
Estimated DSCR: -
SBA guarantee fee: typically ~3% of the guaranteed portion, rolled into the loan
Typical funding timeline: 60 to 90 days from application to close
Personal guarantee required from any 20%+ owner
Our opinion: In our view, SBA 7(a) tends to be the stronger choice when you want a longer term, a lower down payment, and a rate tied to prime. The tradeoff is paperwork and timing. We believe it is worth the wait if the alternative is a short, high-rate conventional loan that strains your cash flow.
Conventional Term Loan
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Estimated APR range
Rates typically range 7% to 14% APR depending on credit, collateral, and relationship
Term: usually 3 to 7 years for working capital and equipment
Estimated monthly payment: -
Estimated DSCR: -
No SBA guarantee fee, but origination fees of 0.5% to 2% are common
Typical funding timeline: 2 to 4 weeks
Personal guarantee almost always required for small businesses
Our opinion: In our opinion, a conventional term loan makes the most sense when speed matters more than price, when the loan is small enough that SBA paperwork is not worth it, or when you already have a strong banking relationship with depository history. We believe the shorter term is the biggest hidden cost to watch.
A note on rates: Rates change daily. Treat the numbers above as directional estimates only and always confirm live terms with an actual lender before making any decision. No lender approval is guaranteed, no matter how strong your financials look on paper.
Your DSCR
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Annual NOI
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Net operating income
Annual Debt Service
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Total P + I
Cushion vs 1.25
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Over/(under) the bank floor
Below 1.00 - Negative
1.00 - 1.24 - Risky
1.25 - 1.49 - Bank Minimum
1.50+ - Strong
How we believe you can improve DSCR: In our opinion the four highest-leverage levers are (1) raising top-line revenue without proportional expense growth, (2) cutting discretionary operating costs that do not drive revenue, (3) refinancing or extending existing debt to lower annual debt service, and (4) paying down high-rate balances so less cash leaks to interest. A capital injection from the owner or a new partner can also move the ratio quickly, though it comes with its own tradeoffs.
Your Guarantee Share
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Most guarantees are joint and several
Full Loan Exposure
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Worst-case under joint and several
State Homestead
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Protected home equity
Community Property?
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Spouse assets may be at risk
What a personal guarantee really means: Signing a personal guarantee means the lender can pursue your personal assets, including bank accounts, brokerage accounts, and in many cases home equity above your state homestead exemption, if the business defaults. In our opinion, many owners underestimate this because default feels unlikely at signing. We believe you should model the guarantee as if the worst-case will happen, then decide if you are still comfortable. If not, negotiate a limited guarantee, a burn-off clause once performance milestones are met, or explore non-recourse alternatives.
Community property warning: In our opinion this is one of the most overlooked risks in small business lending. In community property states, assets acquired during marriage are generally owned jointly by both spouses, which can mean that community assets are reachable by a creditor even when only one spouse signed the guarantee. Rules vary significantly and there are exceptions. Please consult a qualified attorney in your state before signing anything.
This is not financial, legal, tax, or investment advice. The Business Loan Calculator is a free educational tool. We built it to help owners think clearly about loan mechanics, SBA versus conventional tradeoffs, DSCR, and personal guarantee exposure. The figures shown are estimates based on standard amortization math and publicly available information about SBA 7(a) rate caps, conventional loan ranges, state homestead exemptions, and community property statutes as we understand them. Rates, fees, policies, and statutes change often, so please verify everything with your actual lender, a CPA, and a qualified attorney before you borrow.
What this tool does NOT do: It does not guarantee any loan approval, rate, term, or outcome. It does not recommend any specific lender, bank, or program as "better" than another in absolute terms. Every characterization of SBA or conventional lending is our opinion based on our experience helping owners prepare to apply. We will never tell you to go apply without professional guidance, and we will never advocate a "free" or DIY path that skips the diligence your business deserves.
A note on privacy: We value your privacy because we value ours. This calculator runs entirely in your browser. We do not receive, store, log, or sell your inputs. Nothing you enter is transmitted anywhere. You can close this tab and it is gone.
Need an LLC Before You Can Apply?
Most small business lenders want to see a properly formed, in-good-standing entity before they will even look at your application. We handle the formation, registered agent service, and ongoing compliance so you can focus on the loan package.