Daniel 9 allows Jerusalem a further 70 cycles of 7 years each—490 years—to achieve 6 goals. The prophecy, therefore, promises that Jerusalem would be restored to Israel to serve as their executive capital. The city is rebuilt to receive the Messiah, but it is again destroyed because it did not receive the Messiah. In Dispensationalism the last seven years are the seven last years before the Return of Christ when the Antichrist rule. In the traditional interpretations, the last seven years revolves around the Cross.
Origin
Evangelical Christians today extensively hold to the Dispensationalism view on eschatology, in spite of its relatively recent origin. Dispensationalism is often linked with the teachings on prophecy by John Nelson Darby (1800-1882)—from the 1830s on—and the Plymouth Brethren of Ireland. Scofield (1843-1921) of the United States was influenced by Darby and presented the view of seven dispensations from Eden to the new creation in the notes of the widely used Scofield Reference Bible.
Overview of the Prophecy
Daniel received the Daniel 9 prophecy in the year 538 BC. At that time the Jewish nation was in Babylon in captivity, and Jerusalem and the temple were in ruins. Daniel prayed for Jerusalem (9:16), the sanctuary (9:17) and for his people (9:19). While still praying, the angel Gabriel appeared to him (9:21) and gave him the extremely compact and powerful prophecy contained in verses 24 to 27:
Verse 24
The prophecy commences with the announcement that 70 weeks have been decreed for Israel and for its capital city, Jerusalem, to achieve 6 goals:
Seventy weeks are determined upon thy people and upon thy holy city, to
finish the transgression, and
make an end of sins, and
make reconciliation for iniquity, and
bring in everlasting righteousness, and
seal up the vision and prophecy, and to
anoint the most Holy. (KJV)
Israel’s calendar followed a seven-year cycle in which every seventh year was a Sabbath for the land (Lev. 25). The 70 weeks are 70 of those seven-year cycles, and consequently equal to 490 years.
The remaining three verses describe the events through which the six goals above were to be achieved.
Verse 25
This verse indicates when the 490 years start:
“So you are to know and discern that from the issuing of a decree to 
Jerusalem”
To identify this decree, it is important to distinguish between “restore” and “rebuild”. “Restore” in the original text means to give the city back to its previous owner. “Restore” does not include the idea of rebuilding. Jerusalem was the judicial and executive capital of the Israeli people. To restore Jerusalem means that it will be returned to the Jews to serve as their capital from which they would rule their whole nation, according to their own laws as a theocentric society.
Verse 25 continues to say that the Messiah Prince would appear 69 sevens (483 years) after that decree:
“from the issuing of a decree … until Messiah the Prince there will be seven weeks and sixty-two weeks” (NASB).
Verse 25 concludes by adding that the rebuilding of Jerusalem would be “in troublous times”.
Verse 26
This verse shifts the focus back to the Messiah. While verse 25 indicated that the Messiah will appear at the end of the first 483 years, verse 26 states that he would be cut off “after” the 69 sevens.
Verse 26 then again diverts the focus to Jerusalem, stating that it will be destroyed again. Since 70 weeks have been decreed for Jerusalem, it must be this destroyed after the end of the 70 weeks.
It is important to note how the prophecy repeatedly jumps back and forth between Jerusalem and the Messiah. Verses 25 and 26 switch four time from the one to the other. As discussed in the article Poetry and Chiasm in Daniel 9, the prophecy of Daniel 9 is a form of poetic parallelism in which Jerusalem and the Messiah are the two foci. These two foci stand in cause-effect relationships; the city is rebuilt to receive the Messiah, but it is again destroyed because it did not receive the Messiah.
Verse 27
The first part of verse 27 focuses on the final seven years:
“And he shall with many for one week: and in the midst of the week he shall cause the sacrifice and the oblation to cease” (9:27 KJV)
The only event during the first 483 years is “restore and rebuild Jerusalem”. The death of the Messiah, the “confirm the covenant” and the “cause the sacrifice and the oblation to cease” (9:27) all happen during the final seven years. These final seven years, therefore, are the core and the real purpose of the 490 years. The first 483 years merely serve to locate the last seven years in time.
The last part of verse 27 describes unspecified destruction.
Conclusion
Daniel 9 is very different from the other prophecies in Daniel. Daniel 9 is literal and only deals with Israel and the 490 years. The other prophecies are symbolic and deal with all nations and with all time.
Dispensationalism: interpretation in brief
In Dispensationalism:
The 490 years start with the second decree of 
I (Neh. 1-2), who gave Nehemiah permission to repair Jerusalem.
The first 483 years end with Jesus’ triumphal entry of Jesus into Jerusalem on Palm Sunday.
The 490 years are not viewed as continuous, but a huge “parenthesis” or “gap” is inserted between the first 483 years and the final seven years. The entire “church age” is a gap during which the prophetic clock has stopped ticking.
The seven years are the final seven years before the Return of Christ, commencing with the rapture of the church. The rapture includes the resurrection of dead saints and the translation of living saints. They will secretly be removed from the earth.
During the 70th week, the antichrist will arise; a revived Roman empire whose prince will oppress the Jews and bring upon the world a 3½ year tribulation during the latter half of the seven years.
Traditional Interpretation
There is not much difference between Dispensationalism and the traditional Protestant interpretations of the first 483 years. Both start the 490 years with a decree of Artaxerxes and both end the first 483 years in the time of Christ. The major difference is with respect to the final seven years. In the traditional interpretation:
From a decree to restore – The 490 years began with Artaxerxes’ first decree in 458/7 BC.
Until Messiah the Prince – 483 literal years later the Messiah appeared at His baptism in AD 26/27. This was also the beginning of the final seven years.
Sacrifice cease – 3½ years later, in the midst of the final seven years, Jesus was killed, causing “the sacrifice and the oblation to cease”. These sacrifices pointing forward to His death and lost their purpose and meaning when He died.
Confirmed – Jesus Christ confirmed God’s covenant with Israel during the final seven years:
First through His personal preaching for 3½ years before His death;
Then, for a further 3½ years after His death, by sending His disciples with the power of the Holy Spirit to Israel only. In those 3½ years, the church consisted only of Jews and it still adhered to all Old Testament laws. It was a sect of Judaism. See Early Church.
The End – God’s 490-year covenant with Israel came to an end 3½ years after His death, when Israel rejected Him by persecuting His Spirit-filled disciples. After this the gospel was suddenly redirected from Jews only to all people.
Jerusalem destroyed – Since 490 years were decreed for Jerusalem (v24), Jerusalem was not destroyed during those 490 years, but only in 70 AD.
Importance of Daniel 9 in Dispensationalism
The importance of the Seventy Weeks prophecy for Dispensationalism can hardly be exaggerated. Dispensationalism often appeals to Daniel 9 as the clear proof that the entire Church Age is a parenthesis in the prophetic program which is found between verses 26 and 27 of Daniel 9. The other schools of Christian thought on eschatology are able to survive even when their views of Daniel 9 are proven false, but Dispensationalism eschatology stands or fall on its interpretation of Daniel 9.
Summary
Daniel 9 sets 6 goals for Israel.
For this purpose it grants Jerusalem a 70 weeks. Israel’s calendar was divided into groups of seven-years, where every seventh year was a Sabbath. The 70 weeks are 70 of those seven-year cycles, and consequently equal to 490 years.
Jerusalem was to be restored. “Restore” does not mean rebuilding. In the original text to restore means that Jerusalem will be returned to the Jews to serve as their capital to rule the whole nation.
The prophecy repeatedly jumps back and forth between Jerusalem and the Messiah. The prophecy of Daniel 9 is poetic parallelism in which Jerusalem and the Messiah are the two foci. The city is restored and rebuilt to receive the Messiah, but it is again destroyed because it did not receive the Messiah.
The final seven years are the core and the real purpose of the 490 years. The first 483 years merely serve to locate the last seven years in time.
Daniel 9 is very different from the other prophecies in Daniel. Daniel 9 is literal and only deals with Israel and the 490 years. The other prophecies are symbolic and deal with all nations and with all time.
In Dispensationalism the first 483 years end with Jesus’ triumphal entry into Jerusalem, but the last week is the final seven years before the Return of Christ, when the Antichrist will bring upon the world a 3½ year tribulation.
There is not much difference between Dispensationalism and the traditional Protestant interpretations of the first 483 years. Both start the 490 years with a decree of Artaxerxes and both end the first 483 years in the time of Christ. The major difference is with respect to the final seven years. In the traditional interpretation, the final seven years include the 3½ years that Jesus preached in person and the 3½ years after His death, when He preached through His Holy Spirit to Israel only.
Dispensationalism is highly dependent on its interpretation of Daniel 9. If the dispensational interpretation is Daniel is proven false, the entire Dispensational scheme collapses.
Articles in this series
This series discusses the Dispensational interpretation of Daniel 9 and includes the following:
(1) Introduction to Dispensationalism and Daniel 9: Overview of the text of Daniel 9 and of the Dispensational interpretation
(2) WHEN: When did the 490 years begin? When was the decree issued, when did the Messiah appear and when did God suspend His covenant with the Jews?
(3) WHAT: Is it God’s or Satan’s covenant that is confirmed in Daniel 9:27?
(4) WHO: Who confirms that covenant for seven years; the Messiah or the prince?
(5) When are the last seven years? Are they the last seven years before Christ returns?
(6) Other inconsistencies between the text and the Dispensational Interpretation
(7) When will Christ fulfill the Daniel 9:24 goals, set by for the 490 years?
See also, the Summary of all Daniel 9 articles, including the Historical Messianic Interpretation.