Laundromat SBA Loan Payment Calculator
This SBA loan calculator sizes a laundromat acquisition the way a lender does: injection computed on total project cost, a seller note capped at half the requirement and only on full standby, the monthly payment at your rate and at the program ceiling, and debt service coverage after a market-rate salary.
Key takeaways
- Injection is 10% of total project cost, not of the purchase price — the difference is usually thousands of dollars (Source: SBA SOP 50 10 8).
- A seller note covers at most half the requirement, and only on full standby: no principal, no interest, for the life of the loan.
- Rate ceilings are shown alongside your rate: base + 6.5% / 6.0% / 4.5% / 3.0% by loan size. Ceilings are maximums, not offers.
- DSCR is computed after a market-rate salary, because a lender assumes someone has to run the store.
- Reflects SOP 50 10 8. SOP 50 10 8.1 does not take effect until October 1, 2026.
How the Calculation Works
Total project cost is the base for everything. Purchase price plus closing costs plus working capital plus any capital spending funded in the loan. Buyers who budget 10% of the purchase price arrive at closing short by 10% of everything else.
The injection is what you contribute. The SBA minimum on a complete change of ownership is 10% of the project. Lenders apply their own overlays and commonly ask a first-time operator for more, plus personal reserves they want to see remaining after closing.
The seller note is capped in the calculation at half the required injection, which is the current rule, and it applies only when the note sits on full standby for the life of the loan. Any seller note beyond that limit is not injection — it is separate subordinated debt behind the bank, with its own terms and its own risk.
The rate is yours to enter, as a base rate plus a lender spread. The calculator separately shows the program ceiling for your loan size and what the payment would be at that ceiling, because ceilings are what the SBA permits rather than what a lender offers.
DSCR divides cash flow after a market-rate salary by annual debt service. The salary field is deliberately mandatory in the layout: a coverage figure that assumes the owner works for free is the single most common overstatement in acquisition modeling.
Reading the Output
| Output | What to do with it |
|---|---|
| Cash you need at closing | Compare against your liquid assets, then add reserves the lender wants to see remaining |
| Loan amount | Confirm it is under the $5 million 7(a) maximum |
| SBA guaranty | 85% at $150,000 or less, 75% above — this affects the lender's risk, not your payment |
| Monthly payment at the ceiling | Your stress case if you end up at the program maximum |
| DSCR | Below 1.25 is where most files run into trouble |
| Total interest | Useful for comparing a shorter term against a lower payment |
The Test Most Buyers Skip
Recompute DSCR with $10,000 of add-backs removed.
Lenders strike add-backs without source documents as a matter of routine: recurring repairs presented as one-time, family labor performed unpaid, personal expenses without receipts, a second owner's compensation. Each strike reduces the SDE your coverage is computed from.
On the default figures, coverage is comfortable. Take $10,000 out of SDE and it moves meaningfully closer to the threshold. If a $10,000 haircut breaks your file, you are relying on add-backs you have not documented — and that is a problem to solve before an offer, not after an application.
What This Calculator Does Not Do
- It does not price your credit. Rate and spread are inputs, not outputs.
- It does not apply lender overlays. The 10% figure is the SBA floor; your lender's requirement will likely be higher.
- It does not model a 504 structure. If real estate is included, the fixed-asset portion is typically financed separately with different maturities.
- It does not check eligibility. Borrower, business, and use-of-proceeds eligibility are determined by the lender under the current SOP.
- It does not include the SBA guaranty fee separately. Include it in your closing-costs input.
Limits and Disclaimer
Figures are illustrative and calculated from your inputs. This is not an offer of credit, a financing commitment, or legal, tax, or investment advice. Program terms change: this calculator reflects SOP 50 10 8, and SOP 50 10 8.1 takes effect October 1, 2026. Confirm current requirements with an SBA lender before relying on any figure here.
What to Do Next
Run your real numbers, then run them again with a 10% larger injection requirement and $10,000 less SDE. If the deal still works in that version, take it to a lender. If it only works in the base case, keep looking.
The Next Step
Frequently Asked Questions
Why is the injection larger than 10% of the purchase price?
Because the SBA requirement is 10% of total project cost, not of the price. Project cost includes closing costs, working capital, and any capital spending funded in the loan. On a $290,000 purchase with $65,000 of those items, the 10% floor is $35,500 rather than $29,000.
How much of my injection can a seller note cover?
At most half of the required injection, and only when the note is on full standby for the life of the 7(a) loan — no principal and no interest during that term (Source: SBA SOP 50 10 8). The calculator caps the note at that limit and tells you the cash you still need.
Is the rate the calculator shows an offer?
No. You enter a base rate and a spread, and the calculator also shows the program ceiling for your loan size — base plus 6.5% at $50,000 or less, plus 6.0% to $250,000, plus 4.5% to $350,000, and plus 3.0% above that. Ceilings are maximums, not quotes.
What DSCR will a lender want?
Many apply a threshold around 1.25, computed from cash flow after a market-rate salary for whoever runs the store and after striking add-backs without source documents. The calculator asks for that salary explicitly, because leaving it out is the most common way a coverage figure gets overstated.
Does this account for the SOP changes coming in 2026?
It reflects SOP 50 10 8, which is current. SOP 50 10 8.1 is published but does not take effect until October 1, 2026. Any page describing 8.1 as current guidance today is wrong, and this calculator will be re-checked against the new SOP when it takes effect.
Sources
- U.S. Small Business Administration, 7(a) Loans — https://www.sba.gov/loans/7a-loans/
- U.S. Small Business Administration, SOP 50 10 8 Technical Updates effective 2025-06-01 — https://legacy.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx
- U.S. Small Business Administration, SOP 50 10 versions — https://legacy.sba.gov/document/sop-50-10-lender-development-company-loan-programs
- U.S. Small Business Administration, lender program comparison and terms — https://www.sba.gov/sba-lenders/
This page is general information about laundromat transactions, not legal, tax, or investment advice, and not a guarantee of sale price, timing, or financing approval. Verify current rules with your own CPA, attorney, lender, and the relevant state or municipal agency before acting.