GROFINEX

BUYING A BUSINESS

Business return on investment (ROI) calculator

Measure annual operating return on the total purchase investment before financing and buyer income taxes.

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.

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 unlevered operating return
27.5%
Annual adjusted earnings before financing and tax
$220,000.00
Total project investment
$800,000.00
Purchase price / SDE multiple
2.5
Simple payback in years
3.64

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

How this calculator works

Annual return = (SDE − manager cost − capital reserve − working capital increase) / (purchase price + upfront costs + initial operating cash) × 100%.

Assumptions to check

  • This is an unlevered annual scenario, not a forecast of growth or sale proceeds. Enter separately purchased inventory in upfront additional costs.
  • For the return on your own cash after loan payments, use cash-on-cash return. A negative annual return has no positive payback period.

Method reference: bizbuysell.com. Independent GROFINEX implementation.