GROFINEX

BUYING A BUSINESS

Cash-on-cash return calculator

Calculate the annual return on the cash you invest after loan payments, manager costs, and reinvestment allowances.

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.

Include seller-note payments and other continuing obligations.

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-on-cash return
90.37%
Annual cash to buyer before income tax
$112,957.90
Total initial cash invested
$125,000.00
Simple payback in years
1.11
Annual debt payments
$107,042.10

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

How this calculator works

Cash-on-cash return = annual cash remaining after debt / (cash down payment + upfront costs + initial reserve) × 100%.

Assumptions to check

  • Simple payback divides initial invested cash by annual available cash. Neither measure includes future sale proceeds, growth or buyer income tax.
  • Set the down payment to the full price for an all-cash purchase. Include seller-note payments in other debt service. Additional cash calls can reduce returns.

Method reference: bizbuysell.com. Independent GROFINEX implementation.