Business Acquisition Financing Calculator | Ontario Business Brokers

Can this business pay for itself?

Enter the price, how you plan to fund it, and what the business earns. You'll see your monthly payments, whether a Canadian lender is likely to approve the structure, and what to change if it doesn't work.

The deal

How the purchase price is funded. Whatever your down payment and the vendor take-back (VTB) don't cover is what the bank lends.

Purchase price

$

Your down payment

$

Vendor take-back (VTB)

$

Bank loan needed

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Loan terms

Rates are examples. Use the rate your lender quotes you.

Bank interest rate

%

Bank amortization

years

VTB interest rate

%

VTB term

years

VTB interest-only period

years

Optional. Interest-only at the start, then paid off over the rest of the term.

The business

Use the business's annual cash flow before debt payments (EBITDA, or SDE if you'll run it yourself). Then take off what you need to pay yourself or a manager.

Annual cash flow (EBITDA or SDE)

$

Your salary or a manager's

$

Per year. Enter 0 if already deducted.

Equipment and upkeep reserve

$

Per year, to replace trucks, machines, etc.

Cash available for loan payments

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Lender's coverage ratio

Lenders want the business to earn more than the loan payments. A 1.25x ratio means $1.25 of cash flow for every $1.00 of payments. Most Canadian banks and BDC look for about 1.25x.

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Your coverage ratio

—

1.0x break-even

Lender 1.25x

Total monthly payment

—

Cash left after payments

—

Bank payment

—

VTB payment

—

Highest yearly loan payments

—

Most you could pay

—

How the price is funded

Down payment VTB Bank

Ways to make it work

Loan payments by year vs. cash available

Things a lender will look at

Every deal can be structured more than one way. We can help you find the version that gets financed.

Talk to our team

This calculator is an illustration only and is not a loan offer, financial advice, or a valuation. Actual lending decisions depend on the lender, the buyer's credit and experience, collateral, the industry, and the business's financial records. Ontario Business Brokers is not a lender.