Calculator
Can I afford this business?
The question every buyer needs answered before wasting three months. Enter the deal and see whether it covers its own debt — and what is left for you.
Profit before the owner's salary, interest, taxes, depreciation and personal add-backs. What counts.
On full standby a seller note can count toward your injection.
Cash you need at the table
| Your equity injection | |
| SBA guaranty fee | |
| Closing & packaging | |
| Working capital cushion | |
| Total |
The cushion is not optional. Buyers who close with nothing spare are the ones taking a cash advance eight months later.
If it gets worse
stress testMost lenders want 1.15× or better. Below 1.0 the business cannot pay its own loan.
Common questions
How do lenders decide if a business can afford the loan?
They test debt service coverage (DSCR) — the business’s cash flow divided by its loan payments. Most SBA lenders want a DSCR of at least 1.15–1.25×, meaning the business earns 15–25% more than the payment. This tool estimates yours.
What counts as cash flow for an acquisition?
Usually the seller’s discretionary earnings (SDE) or EBITDA, adjusted for the new owner’s salary and any add-backs. Lenders scrutinise add-backs closely, so be conservative.
Can an SBA loan buy a business?
Yes — a business acquisition is a “change of ownership” and one of the most common uses of a 7(a) loan. It generally requires at least a 10% equity injection from the buyer.
Read the guide
Want the rules behind this calculator? SBA loan for buying a business walks through it in plain English — the SBA requirements, the data, and what lenders actually look for.