SBA 504 Loan Calculator

Start with the full project budget

Enter the eligible project cost from your lender or Certified Development Company, then enter the proposed bank and CDC shares. The remaining amount is the borrower contribution. A common illustration uses 50% bank financing, 40% CDC financing, and 10% equity, but your approved structure can differ. The SBA's lender resources explain these components.

Do not treat the down payment as the entire cash requirement. Professional fees, interim financing costs, reserves, and items outside the financed project may require additional cash. Classify fees once: as part of the project allocation, added to a specific loan, or paid separately.

The SBA 504 program is intended for eligible major fixed assets. Its official guidance distinguishes those uses from working capital or inventory. A monthly payment estimate cannot decide whether your particular project qualifies.

Continue with SBA Loan Calculator or Merchant Cash Advance Calculator for the next calculation.

Enter separate terms for each loan

For the bank component, enter its starting principal, note rate, amortization period, and contractual maturity. A loan can calculate payments over 25 years but require its remaining balance after 10 years. That final balance is a balloon, not an extra payment already covered by ordinary amortization.

For the CDC component, enter the quoted principal and repayment term. Use a quoted scheduled payment when available, or an appropriate note-rate estimate with any separate ongoing charges entered explicitly. Do not treat an all-in effective rate as a simple note rate and then add the same servicing fees again.

This calculator can estimate a fully amortizing CDC payment from a note rate. The CDC's actual debenture structure, fees, and payment quote control the contractual amount. Keep the bank and CDC assumptions visible even when comparing the combined total.

Example: a $1 million project

Assume a project with $500,000 bank financing, $400,000 CDC financing, and $100,000 equity. Both modeled payments use 300 months of amortization. The hypothetical bank note rate is 7%, and the CDC payment estimate uses 6%, with no additional financed or ongoing fees.

The combined total uses unrounded payments, so displayed component rounding can differ by a cent. If the bank loan matures immediately after its 120th scheduled payment, the estimated remaining balance is $393,166.98. That balloon would need repayment or another financing arrangement. A future refinance is not guaranteed.

The $100,000 equity contribution is upfront project funding, not interest or a lending fee. This example uses assumed rates and costs; it is not a CDC quote or a current market benchmark.

Read the result as a financing schedule

Look at three numbers together: cash required at closing, recurring debt service, and debt still due at each maturity. A modest current monthly payment can coexist with a large balloon. Also check when permanent financing starts and how interim interest will be handled.

Use the business loan calculator to compare a single term-loan alternative. If the project involves rental-property lending, the DSCR loan calculator examines a different underwriting concept; its result does not establish 504 eligibility or owner-occupancy compliance.

Important limits

This tool does not approve borrower equity, select an eligible project structure, predict a future debenture rate, or determine prepayment charges. Taxes, insurance, maintenance, vacancy, and operating expenses are outside the debt-payment total. Bank rate resets also require a separate scenario or the actual contract schedule.

Frequently asked questions