SBA Acquisition Calculator
Price your cash supports
$1,500,000
Assumes a 10% equity injection.
Price the earnings support
$2,339,013
4.7x the earnings at that price, before you weigh it against the trade's own band.
SBA loan amount
$1,350,000
10-year term at 9%
Monthly payment
$17,101
$205,215 per year in debt service
SBA guaranty fee
$35,469
Charged once, on the guaranteed portion rather than the whole loan. Most borrowers finance it into the loan instead of paying it at close.
SDE the business needs
$356,518
Covers your $100,000 salary plus debt service at 1.25× coverage, the screen lenders commonly apply.
Your down payment is what limits this deal. The earnings carry debt on $2,339,013, and your cash reaches $1,500,000. A seller note on full standby, or a partner on the equity, is what moves that ceiling. A cheaper business does not. See who writes that equity.
Assumptions
- Rates default to today's typical pricing, about Prime + 2.25% (9% with prime at 6.75%); well-qualified borrowers see roughly 8.5–9.25%.
- 10-year term (standard for business-only acquisitions), 10% equity injection, single 7(a) loan up to $5,000,000.
- Seller notes counted toward the injection are modeled on full standby, per the reported mid-2025 rule changes.
- The SDE figure covers your salary plus debt service at 1.25×, a common lender screen, not a regulation. Working capital, closing costs, and taxes are on top.
- The same coverage screen runs both ways. From your cash it gives the earnings a deal needs; from a listing's earnings it gives the most that structure will carry. The loan, payment, and fee below describe whichever of the two ceilings is lower, because that is the deal you can actually do.
Educational, not financing advice; every lender structures deals differently, so confirm numbers on your actual deal. See the SBA loan statistics page for sources.
One Loan, Year by Year
Monthly Payment
$12,668
Total Interest
$520,109
Over 10 years
All Payments
$1,520,109
| 1 | $87,377 | $64,634 | $935,366 | $64,634 |
| 2 | $81,314 | $70,697 | $864,669 | $135,331 |
| 3 | $74,682 | $77,329 | $787,340 | $212,660 |
| 4 | $67,428 | $84,583 | $702,757 | $297,243 |
| 5 | $59,494 | $92,517 | $610,240 | $389,760 |
| 6 | $50,815 | $101,196 | $509,044 | $490,956 |
| 7 | $41,322 | $110,689 | $398,355 | $601,645 |
| 8 | $30,939 | $121,072 | $277,282 | $722,718 |
| 9 | $19,581 | $132,430 | $144,853 | $855,147 |
| 10 | $7,158 | $144,853 | $0 | $1,000,000 |
Inputs travel in this page's address, so a scenario can be shared by copying the URL. Variable-rate 7(a) loans reprice with prime; this schedule holds the rate constant, so treat later years as illustrative.
Two or Three Quotes, Compared
Quote A
- Monthly payment
- $18,216
- Total interest
- $835,947
- All-in cost
- $880,947
- Cost per dollar borrowed
- $0.653
- Coverage after salary
- 1.83
Quote B
- Monthly payment
- $17,840
- Total interest
- $790,842
- All-in cost
- $850,842
- Cost per dollar borrowed
- $0.630
- Coverage after salary
- 1.87
Cheapest Money
Quote B
Lowest cost per dollar borrowed, interest plus fees over the life of the loan; check the coverage line before choosing on cost alone
The Seller Note
Most 7(a) acquisitions carry a seller note beside the bank loan. Price it here: payment, schedule, and total interest, including an interest-only period. A note counted toward the equity injection must sit on full standby for the life of the loan, and the whole stack assembles in the Sources & Uses Builder.
Amortized Payment
$3,960/mo
Level payment for the full term
Total Interest
$37,614
$237,614 paid over the term
Closing Day Funds
The last number: the cash you actually wire on closing day, once the equity injection, the computed SBA guaranty fee, closing costs, and working capital are added up.
Cash to Close
$2,891,500
What you wire on closing day
Equity Into Price
$2,725,000
Price not covered by loan and note
SBA Guaranty Fee
$31,500
Computed from the loan, not estimated
Where to Go From a Number
Stage 3 of the roadmap covers funding the search, stage 5 covers the lending gauntlet, and the Lenders shelf carries every acquisition lender and loan broker reviewed so far, each read against its own pages.