How the business affordability calculator works
Usable equity = cash − the reserve you keep back.
Supportable price = usable equity ÷ equity percentage. Seller financing and senior debt fill the rest.
How to read the result
- This is a ceiling based on your cash, not on what a business can carry. Always test the specific deal in the deal analyzer.
Questions
How much cash do I need to buy a business?
It depends on the price, the lender’s equity requirement, seller financing and how much reserve you keep. Use this tool with your own inputs.
Educational content, not advice. Bootstrapper.com publishes general information for education. It is not legal, tax, accounting, lending or investment advice and does not consider your circumstances. Calculator outputs are illustrative estimates. Rules, rates and programs change; confirm details with qualified professionals before making decisions.
Formulas are simplified and tested in an open test suite. Spotted an error? Email hello@bootstrapper.com.