Business Buyer’s Calculator
Evaluating a business to buy? Enter the numbers to see two things at once: whether the asking price is fair, and whether you can finance it while keeping your household secure.
This is an educational estimate, not financial, lending, or valuation advice.
Real valuations and loan approvals depend on many factors this tool can’t capture. Always verify a business’s actual financials (tax returns and bank statements, not the seller’s projections) and consult a qualified professional before buying.
About the Business
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The yearly profit the owner actually takes home (brokers call this SDE or owner’s cash flow). Use the verified figure from tax returns, not the listing’s claim.
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Used to compare the asking price against what businesses like this typically sell for.
Your Financing Plan
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Defaults reflect a typical SBA acquisition loan (10% down, ~10.5% rate, 10-year term). Adjust to your situation.
Many SBA acquisition loans let you finance extra working capital and closing costs on top of the price. This lowers the cash you need up front, but increases the loan and monthly payment. Lender approval varies.
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Other Upfront Costs (easy to forget)
The down payment isn’t the whole cost of closing. Most buyers also pay for legal, accounting, insurance, and loan fees out of pocket. Budgeting for these gives you the real cash picture.
Enter your best estimate of costs paid at or before closing. These vary widely by deal size and complexity, but commonly include: attorney fees and CPA / due-diligence review (often a few thousand to low five figures combined), business and liability insurance (a down payment or first premium), SBA loan and packaging fees, lease deposits, and licensing transfers. When unsure, budget high.
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Your Safety Check
So we can show how many months of personal runway your remaining cash covers.
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Is the Price Fair?
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Asking price as a multiple of profit—
Typical range for this business type—
Can You Afford It?
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Down payment—
Other upfront costs—
Total cash needed to close—
Loan amount—
Estimated monthly loan payment—
Profit left after loan payments (per year)—
Debt Service Coverage Ratio (DSCR)—
Household runway (cash after down payment)—
DSCR is how much more the business earns than the loan costs. Lenders typically want at least 1.15 (the business earning 15% more than its debt payments). Runway is how many months your leftover cash would cover your household if the business paid you nothing at first.
Your Next Steps
Based on where you are in evaluating this deal.
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