Plan the franchise project amount
A franchise project budget may include an initial franchise fee, equipment, leasehold improvements, inventory, training and working capital. Include costs in the project total only when they are part of the financing plan. Ongoing royalties and operating expenses belong in a separate cash-flow forecast.
Enter the cash you plan to contribute. The tool subtracts that amount from project cost to estimate the amount financed. The displayed contribution share is descriptive; it is not an SBA rule or a universal lender requirement.
Monthly payment method and assumptions
The estimate divides a fixed nominal annual interest rate by 12 and calculates equal monthly principal-and-interest payments over the selected number of whole months. It assumes the first payment is due one month after borrowing. Fees, variable rates, interest-only periods, payment holidays, weekly and daily schedules are not modelled.
The input is a nominal interest rate, not an APR with fees. Compare the estimate with the payment schedule, fees and total cost in a lender's written offer.
Worked US repayment example
For an $80,000 project with no owner contribution, the amount financed is $80,000. At an illustrative fixed nominal annual rate of 8% over 7 years, estimated monthly payments are $1,246.90. The 84 payments total $104,739.36, including $24,739.36 interest. This example excludes fees and is not a lender offer.
The default contribution is zero so the page does not imply an SBA or lender contribution rule. Enter the contribution in your own financing plan or offer.
SBA and lender eligibility are separate
The SBA 7(a) program is administered through participating lenders and has program eligibility requirements. The SBA Franchise Directory helps lenders and CDCs evaluate franchise eligibility; listing is not SBA endorsement or approval and does not guarantee success. This calculator checks none of those requirements.
For SBA financing, confirm current rules and fees with the SBA or participating lender. This generic fixed-rate estimate is not a substitute for the lender's schedule, especially where the offer has a variable rate or fees.
Inputs for the US franchise business loan calculator
Total franchise project cost
Include the project costs you plan to finance, such as fees, equipment or working capital.
Your cash down payment
Enter owner cash toward the project. The amount is subtracted from total cost.
Fixed annual interest rate (nominal)
Use the fixed annual nominal rate from a quote, before fees; this is not APR.
Repayment term
Enter years; fractional years work when they equal a whole number of months.
CALCULATOR QUESTIONS
Franchise business loan calculator US questions
Does this check 7(a) eligibility?
No. SBA 7(a) eligibility and lender underwriting are separate. This tool only estimates payments from your inputs.
Does franchise directory placement mean SBA approval?
No. The directory helps lenders and CDCs evaluate eligibility; listing is not endorsement, approval or a guarantee of success.
Is there a required owner contribution percentage?
This tool does not apply an SBA or lender contribution rule. Enter the cash contribution stated in your own financing plan or offer.
Are franchise fees and royalties included?
Add planned start-up costs to project cost if they are being financed. Ongoing royalties are not included in loan payments.
Does the calculator include loan fees or variable rates?
No. It models a fixed nominal rate and excludes fees. Compare those terms with a lender's written payment schedule.
Can it estimate weekly payments?
No. It models equal monthly payments only; weekly and daily payment methods depend on lender-specific terms.