Max Purchase Price Calculator
Work out the most you can pay for a business. Start from its cash flow and your target coverage ratio, and the calculator solves for the price the deal can actually support.
Works backward from cash flow: at your target coverage ratio, the business can service a loan of this size, and your down payment adds on top. A higher target DSCR means a safer deal but a lower price.
Let the cash flow set your ceiling
New buyers often start from the asking price and try to make it work. It is safer to run it the other way: figure out what the business can afford to borrow, add what you can put down, and let that set your ceiling. A deal priced above that number will strain the business from day one, no matter how much you like it.
This calculator does that math in reverse. Set a target coverage ratio you are comfortable with, and it returns the maximum price and the multiple that implies, so you walk into a negotiation knowing your top number.
Frequently asked questions
How much can I afford to pay for a business?
Start from cash flow. At a target coverage ratio, say 1.25x, the business can service a loan of a certain size. Add the cash you can put down, and that sum is the most the deal supports.
Why does a higher target DSCR lower the price?
A higher coverage ratio reserves more cash flow as a safety cushion, which leaves less to service debt. Less debt capacity means a smaller supportable loan and a lower maximum price.
What down payment should I assume?
SBA 7(a) acquisitions usually require at least 10% equity. Enter the cash you can actually put in; the calculator adds it on top of the loan the business can support.
Does a longer loan term let me pay more?
Yes. A longer term lowers the annual payment, which raises the loan the same cash flow can cover, so the maximum price rises. The trade-off is more interest paid over the life of the loan.
More free tools
Free readiness assessmentAm I Ready to Buy a Business?A free, no-email readiness assessment across the five things that decide whether a buyer gets taken seriously.Take the assessment →Find the business these numbers are for
Clef brings 120,000+ businesses for sale from hundreds of marketplaces and broker sites into one searchable feed, with the financials, alerts, and pipeline tracking to run your whole search in one place.
Start searching free