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SBA Debt-Service Calculator

Model the payment pressure of an amortizing SBA-style term loan. The calculator shows payment per period, monthly equivalent, annual debt service, optional DSCR, and the annual cash-flow threshold needed for 1.00x coverage.

Transparent amortization

Uses the standard amortizing payment formula, with a zero-rate branch when interest is entered as 0%.

DSCR only with cash flow

DSCR appears only when annual cash flow available for debt service is supplied.

No approval threshold

The tool does not set SBA rates, lender approval, collateral, guaranty, eligibility, or a universal DSCR minimum.

Enter one amortizing loan scenario

Use lender term-sheet numbers when available. The worksheet uses native FormData, does not save inputs, does not write local or session storage, and does not append query-string persistence.

Loan amount, rate, and term

Principal borrowed before any optional financed fees. SBA 7(a) loans have program maximums, but your actual loan amount is a lender and transaction question. Input accepts whole dollars, rounded to the nearest $1,000.

Nominal annual rate used only for the payment formula. SBA and lenders determine maximums, fixed or variable terms, and rate changes outside this worksheet. Input accepts two decimal places.

Modeled amortization term. This is not a promise that a lender or SBA program will allow the entered maturity. Input accepts half-year increments.

Choose how often the modeled term-loan payments are made. Input accepts one of the listed payment frequencies.

Optional financed fees and DSCR input

Optional fees included in the amortized balance only when the loan documents finance them. Enter 0 when fees are paid separately or unknown. Input accepts whole dollars, rounded to the nearest $100.

Optional annual cash flow available for debt service. Leave at 0 when you only want payment and annual debt-service arithmetic. Input accepts whole dollars, rounded to the nearest $1,000.

Payment per period

$6,470

Annual debt service

$77,639

DSCR

Not supplied

Equation and substituted arithmetic

Payment per period = amount financed × periodic rate ÷ (1 − (1 + periodic rate)^−number of payments). Annual debt service = payment per period × payments per year.

$500,000 × 0.7917% ÷ (1 − (1 + 0.7917%)^−120) = $6,470 per monthly period; $6,470 × 12 = $77,639 annual debt service.

Unrounded details: amount financed 500000, periodic rate 0.007916666667, payment per period 6469.877878038899, annual debt service 77638.53453646679.

Monthly equivalent

$6,470

Annual debt service divided by 12. It is a comparison measure, not a payment schedule when another frequency is selected.

Payments modeled

120 monthly payments

Term multiplied by payment frequency, rounded to a whole number of payments.

Break-even cash flow for 1.00x DSCR

$77,639

Annual cash flow available for debt service would need to equal annual debt service for DSCR to be 1.00x.

Total interest and financed fees

$276,385

Total payments minus original principal. This includes any optional fees entered as financed.

Assumptions and limits

  • Debt service means the modeled principal-and-interest payment obligation for the amortizing term loan assumptions entered.
  • DSCR is shown only when annual cash flow available for debt service is supplied; the calculator does not invent revenue, add-backs, tax adjustments, or lender underwriting adjustments.
  • Financed fees are optional and are included only when the user enters them as part of the amount amortized. The worksheet does not determine SBA guaranty fees, packaging fees, closing costs, prepayment charges, or taxes.
  • Rates, terms, fees, guaranty percentage, eligibility, approval, collateral, personal guaranty, balloon payment, variable-rate changes, and covenants are set by SBA rules, lender policy, and loan documents, not by this calculator.
  • The result is educational arithmetic, not legal, tax, accounting, lending, valuation, fiduciary, or affordability advice.

How to use the result

Start with the loan documents or term sheet

SBA explains that borrowers work directly with lenders and that most 7(a) term loans are repaid with monthly principal-and-interest payments from business cash flow [1]. Use the actual lender rate, maturity, and fee treatment when available.

Keep lender rules outside the formula

SBA lender materials state that rates are negotiated subject to SBA maximums and that maturities, guaranty percentages, collateral, and credit decisions vary by loan type and policy [2]. This calculator supplies arithmetic, not underwriting.

Use SOP and lender guidance for boundaries

SBA identifies SOP 50 10 as the governing loan-origination policy source for 7(a) and 504 programs [3]. Use it and lender instructions for eligibility, proceeds, equity injection, collateral, guaranty, and servicing questions.

Separate loan math from ROBS compliance

A ROBS-funded company may also borrow, but IRS ROBS guidance focuses on plan stock, valuation, filings, recordkeeping, and related operational issues [4]. A workable payment schedule does not validate a ROBS transaction.

What the calculator intentionally does not decide

  • Whether an SBA-participating lender will approve the loan or use the entered maturity.
  • Whether the rate is fixed, variable, at the SBA maximum, or available to the borrower.
  • Whether fees are financed, paid at closing, waived, limited, refundable, or tax-deductible.
  • Whether collateral, personal guaranties, liens, insurance, or covenants are required.
  • Whether a balloon payment, prepayment term, refinancing option, or servicing action applies.
  • Whether a ROBS-funded C corporation should borrow or whether retirement-plan fiduciary duties are satisfied.

Frequently asked questions

What does this SBA debt-service calculator measure?

It models an amortizing term-loan payment from the loan amount, optional financed fees, annual interest rate, term, and payment frequency entered. It then annualizes that payment as annual debt service.

When does the calculator show DSCR?

It shows debt-service coverage ratio only when annual cash flow available for debt service is supplied. DSCR equals annual cash flow available for debt service divided by annual debt service.

Is there a universal SBA DSCR minimum?

No universal SBA approval threshold is stated here. Lenders and SBA program rules evaluate repayment ability, creditworthiness, collateral, guaranties, eligibility, loan type, and documentation under the facts of the specific loan.

Does this determine SBA rates, fees, or approval?

No. SBA and lenders determine permitted rates, guaranty terms, eligibility, required collateral, personal guaranties, maturities, fees, variable-rate changes, prepayment terms, and approval through program rules and loan documents.

Why include a zero-rate branch?

The standard amortization formula divides by the periodic interest rate. When the entered interest rate is 0%, the payment is simply amount financed divided by the number of payments.

Sources

  1. SBA 7(a) loans. SBA states that 7(a) loans are made through lenders, can be used for working capital, equipment, real estate, changes of ownership, and other listed uses, and that most 7(a) term loans are repaid with monthly principal-and-interest payments from business cash flow. Checked Aug. 13, 2026; page modified July 27, 2026.
  2. SBA lenders and 7(a) terms. SBA states that 7(a) rates are negotiated between borrower and lender subject to SBA maximums; maturities, guaranty percentages, collateral, credit decisions, and lender responsibilities vary by loan type and policy. Checked Aug. 13, 2026; page modified Aug. 7, 2026.
  3. SBA SOP 50 10. SBA describes SOP 50 10 as the loan-origination policies and procedures for 7(a) and 504 programs, including core requirements and program-specific requirements. Checked Aug. 13, 2026; version 8 effective June 1, 2025; page last updated Sept. 3, 2025.
  4. IRS ROBS compliance project. IRS describes ROBS as rollover assets used by a plan to purchase new C corporation stock and identifies plan-operation, valuation, filing, recordkeeping, bankruptcy, lien, and dissolution concerns. Checked Aug. 13, 2026; page last reviewed Nov. 16, 2025.

Neutral next actions

Compare the result with the acquisition down-payment, runway, and ROBS cost tools. Then ask the lender, CPA, ERISA attorney, ROBS provider, and business adviser which cash-flow definition, add-backs, taxes, reserves, fees, guaranties, and covenants belong in the actual financing model.