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Affordability

How Much Business Can I Afford?

Know your real purchase-price range before you fall in love with a listing. Affordability depends on both your down payment and whether the business can produce enough cash flow to service the debt and pay you.

You may technically be able to finance a $1.5M acquisition, but based on your required income and estimated debt service, you should probably be targeting businesses producing at least a certain amount in normalized cash flow. This calculator shows you both numbers.

Liquid cash you could put toward an acquisition

$

Savings you will not touch

$

Cash the business needs for operations

$

SBA rates typically 10-12%; verify with a lender

%

SBA 7(a) commonly 10 years; real estate can go to 25

yrs

What you need to live on

$