Deal Affordability Calculator

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Find out what you can realistically buy. Runs SBA loan qualification, required liquidity, and a full personal financial assessment. Free online business acquisition model with instant calculations, CSV/JSON exports, and 100% in-browser privacy.

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Debt Service Coverage Ratio (DSCR) & SBA Affordability Formula

DSCR = Annual SDE / Total Annual Debt Service Total Cash Required = Down Payment + Closing Costs (3%) + Working Capital (5%) + Personal Reserves (6 mo)

SBA 7(a) commercial lenders require a minimum Debt Service Coverage Ratio of 1.15x (1.25x+ preferred) alongside a minimum 10% cash equity injection. The total cash required at closing must encompass lender equity, closing fees, post-closing working capital buffers, and living expense reserves.

Quick Reference Guide

Purchase Price10% Equity DownEst. 10-Yr P&I (10.5%)Min SDE Needed (1.25x DSCR)
$500,000$50,000$6,076 / mo$91,140 / yr
$1,000,000$100,000$12,152 / mo$182,280 / yr
$2,000,000$200,000$24,304 / mo$364,560 / yr
$3,500,000$350,000$42,532 / mo$637,980 / yr

Frequently Asked Questions & Expert Guide

Is the Deal Affordability Calculator completely free to use?

Yes, 100% free with no hidden charges. The Deal Affordability Calculator on Tools Stak requires no paid subscription, account registration, or software installation. You can run unlimited calculations and operations directly in your browser without paywalls or usage throttles.

Is my data secure and private when using Deal Affordability Calculator?

Absolute privacy and data security are guaranteed. All computations, text parsing, and mathematical calculations for the Deal Affordability Calculator execute entirely client-side inside your browser JavaScript runtime. Your confidential numbers, proprietary business inputs, and personal parameters are never uploaded, logged, or stored on external servers.

Can I use the Deal Affordability Calculator on mobile phones and tablets?

Yes. The Deal Affordability Calculator is engineered with a responsive, mobile-first design system. It adapts seamlessly to smartphones, tablets, laptops, and ultra-wide desktop monitors across all modern browsers including Google Chrome, Apple Safari, Mozilla Firefox, and Microsoft Edge.

How do I copy, export, or print results from the Deal Affordability Calculator?

The Deal Affordability Calculator features instant one-click copy buttons and formatted data export containers. You can copy calculated figures directly to your system clipboard or use your browser print dialog (Ctrl+P / Cmd+P) to save reports as high-resolution PDF summaries for business presentations or financial audits.

Are calculations in the Deal Affordability Calculator aligned with SBA 7(a) and commercial banking standards?

Yes. Our business acquisition tools adhere to standard commercial lending criteria under SBA SOP 50 10 7 underwriting rules. This includes Debt Service Coverage Ratios (minimum 1.15x – 1.25x+ thresholds), SBA 7(a) $5M statutory borrowing limits, 10% minimum equity injection benchmarks, and industry-standard working capital peg formulas.

Can I use outputs from the Deal Affordability Calculator in an LOI, CIM review, or bank loan application?

Yes. All financial breakdowns generated by the Deal Affordability Calculator can be exported to CSV or copied as structured deal summaries. They are designed to assist buyers, brokers, and advisors during Letter of Intent (LOI) negotiations, Confidential Information Memorandum (CIM) financial reviews, and debt packaging.

How does the Deal Affordability Calculator handle Seller Discretionary Earnings (SDE) and owner add-backs?

The calculator provides transparent normalization fields for owner officer compensation, discretionary travel/vehicles, non-recurring legal expenses, and non-cash depreciation. This ensures your final cash flow figures accurately reflect true operating earning power.

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