The SBA 504 loan program is one of the most powerful financing tools available for small business owners purchasing commercial real estate or major equipment. Our SBA 504 loan calculator lets you estimate your monthly payments before you approach a lender. Here’s how to use it and what the results tell you.
What Is an SBA 504 Loan?
An SBA 504 loan is a long-term, fixed-rate financing program for major fixed assets — typically commercial real estate and large equipment. Unlike a conventional loan, a 504 loan has a unique three-party structure:
- 50% from a conventional bank lender (first mortgage)
- 40% from a Certified Development Company (CDC), backed by the SBA (second mortgage)
- 10% down payment from the borrower (sometimes 15–20% for startups or special-use properties)
The CDC/SBA portion carries a fixed interest rate set monthly by the SBA, making 504 loans predictable and budget-friendly.
Inputs You Need for the SBA 504 Calculator
To get an accurate estimate from our calculator, you’ll need:
- Total project cost — purchase price plus eligible soft costs (appraisal, environmental, title)
- Down payment percentage — typically 10%, or 15–20% for startups
- Loan term — 10, 20, or 25 years for the CDC portion (bank portion is typically 10 years)
- Interest rate — the SBA sets the CDC rate monthly; the bank rate varies
Understanding Your Payment Results
The calculator shows you two separate payment streams because the 504 loan has two components:
Bank (first mortgage) payment: Typically a 10-year term, often at a variable or adjustable rate. This portion is negotiated directly with your bank.
CDC/SBA payment: Fixed rate for the full term (10, 20, or 25 years). This is the most predictable part of your payment.
Your total monthly obligation is the sum of both payments.
SBA 504 vs SBA 7(a) — Which Calculator Do You Need?
If you’re financing commercial real estate or equipment over $150,000, the 504 calculator is the right tool. If you need working capital, business acquisition funding, or a more flexible general-purpose loan, use our SBA 7(a) calculator instead.
Current SBA 504 Rate Structure (2026)
The SBA 504 debenture rate for the CDC portion is tied to the 10-year Treasury rate plus a spread. In mid-2026, effective fixed rates on the CDC portion are approximately 6.5–7.5% depending on the term. The bank portion rates vary by lender and borrower profile.
Calculate Your SBA 504 Payment Now
Use our free SBA 504 loan calculator to estimate your payments with your actual project costs and current rates. Enter your numbers and see your monthly obligation instantly — before you spend hours in a lender’s office.