GROFINEX

BUYING A BUSINESS

Business acquisition cash flow calculator

Estimate income available after management, debt service, and reinvestment before buying a business.

Your scenario

All amounts are in US dollars. Start with the example, then enter your numbers. Results update as you type.

Use verified earnings, not revenue. Do not use EBITDA here unless you adjust the manager field accordingly.

Fully loaded salary, benefits, and employer payroll costs; avoid deducting costs already retained in earnings.

Illustration only; enter your quote. This is the note rate, not an annual percentage rate including fees.

Fixed rate, monthly payments, no prepayment penalty assumed.

Calculation inputs stay in this page’s memory and are not submitted as a lead. Requesting contact is a separate step.

ILLUSTRATIVE EXAMPLE

See what the numbers say.

Annual cash available to buyer before income tax
$112,957.90
Monthly cash available before income tax
$9,413.16
Annual debt payments
$107,042.10
Illustrative debt coverage
2.06
Simplified cash available ÷ debt payments; lender methods differ.
Initial cash required
$125,000.00
Cash recovery in months
13.28

Estimates, not quotes, approvals, appraisals or guaranteed returns.

How this calculator works

Annual cash to buyer = SDE − manager cost − capital reserve − working capital increase − annual acquisition and seller debt payments.

Assumptions to check

  • Cash available is before buyer income taxes. Do not treat the seller’s headline earnings as take-home income.
  • Initial cash includes the down payment, upfront closing costs and cash reserve. This simplified screen excludes variable rates, unforeseen cash needs and future sale proceeds.