Usually a gallery layout (elements along both walls) or a T arrangement (bath or shower at the end) will work. Are you a shower or tub person? Do you want to allow the option for both?

If you already have a tub in another bathroom, then I would suggest a shower rather then a tub. The bathroom layout would work really well if you had 8'-6" instead of 8', but I don't know if that is possible.....

However, with a little help from a good designer you can make the 7' x 8' work.....

Do not add tub....a walk in shower (wet room) will make it roomy. In a wet room, no shower doors/curtains are needed, and without those objects the room will appear to be larger

Thanks for your input! The bathroom is going to be off of the living area so I don't think my husband will agree to a wet room. I won't be using the tub/shower in this bathroom, so I don't have a preference. I just would like it to look nice since it is located where it will be more visible. I'm thinking of the T-layout if there's room to put the toilet where it won't be so prominent.

Off the living area where everyone gathers? I'd be doing a sink and toilet. I don't want the rest of the house know what I'm doing in the bathroom. Not for overnight guests?

Agree with Karenb Why go to the expense of adding a tub if you are not going to use it? Why not make this a great powder room for guests.