Your deal
Cash flow
Seller's discretionary earnings you can support with tax returns and bank statements, not just the listing.
Not sure it's verified? Try the Add-back checker first.
What it costs to pay yourself or a replacement manager to run it. SDE leaves this out, so we subtract it.
Equipment, vehicles, and upkeep needed just to keep things running.
Lender terms
Debt service coverage ratio: cash flow divided by loan payments. SBA lenders usually want at least 1.15 to 1.25.
Prime plus a spread. Edit to match your quote.
Usually 10 for a business purchase.
Cash you bring. SBA commonly looks for about 10%.
Seller note (optional)
Set to 0 if none.
Often 5% to 8%.
Total length, including standby.
No payments during standby. SBA often requires full standby for a note counted toward equity.
Asking price and cash needs
We'll test it against your target.
Cash to run the business early on. Optional.
Legal, SBA guarantee fee, diligence. Optional.
Please read: educational estimates only. This calculator is not investment, lending, legal or tax advice. It is for educational and illustrative purposes only. Results are estimates, and lender terms vary. The final price you pay is solely your responsibility and should be decided only after consulting your own broker, attorney and CPA.
Maximum supportable purchase price
$0
Annual debt service at the max price
| Cash flow available for debt (SDE minus salary and capex) | |
| SBA loan amount | |
| SBA payments per year | |
| Seller note payments per year | |
| Total debt service |
Your asking price, tested
| At asking | At max | |
|---|---|---|
| Price | ||
| Multiple of SDE | ||
| Total debt service | ||
| DSCR | ||
| DSCR after seller note standby ends | ||
| Cash needed at close |
Cash at close is your equity plus working capital plus closing costs.
Sensitivity: max price by DSCR and rate
Highlighted cell matches your current inputs where they line up.
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