Before you fall for a listing, it helps to sketch a boring range: given the cash you can put in, what purchase price sits near common SBA 7(a) purchase assumptions, and what earnings a deal in that range would need so debt service and a household draw both clear on paper.
This free tool sketches that range from your equity, an assumed 10-year amortizing loan at a conservative interest rate, a 1.25x debt service coverage test, and editable seller's discretionary earnings (SDE) multiples. Use it for rough budgeting only. It is not a credit decision, loan offer, approval, or advice about what you can afford. For the rulebook behind the defaults, see our guide to SBA 7(a) requirements when you buy and the price walkthrough in what a $100k cash-flow business really costs.
How we calculated this
Turn the sketch into a readiness score
The calculator sizes a price band. The assessment checks whether your capital, timeline and preferred owner role actually fit that kind of deal.
Take the assessmentWhat the defaults assume
For an SBA 7(a) Initial Acquisition, SOP 50 10 sets a minimum equity injection of 10% that cannot be reduced or eliminated. Divide your equity by 0.10 and you get a theoretical purchase ceiling from that rule alone. The 7(a) program also caps the loan at $5 million, so the calculator never assumes a larger note. Change-of-ownership credit standards for Initial Acquisitions use a minimum historical debt service coverage of 1.25:1 on the SOP's stated basis.
Interest rate in this tool is deliberately conservative: the Federal Reserve's H.15 bank prime loan rate (7.00% on the October 29, 2026 release) plus the SBA maximum variable-rate spread for the estimated loan size, as published on SBA's lender terms page ($50,001 to $250,000: prime + 6.0%; $250,001 to $350,000: +4.5%; above $350,000: +3.0%). Maturity is modeled as 10 years, the usual maximum when the loan is not financing real estate. Lenders often price below the ceiling. Your quote wins.
SDE multiples default to 2.5x–3.5x and are labeled as assumptions you can edit. They are not a promise of what brokers will ask or what closed deals will print in your industry. Use them to translate a required earnings figure into a rough asking-price neighborhood, then verify with comps and diligence. For reading the earnings themselves, see how to judge business numbers before an offer.
How to read the two price ideas
The equity-based max purchase is the higher of what a 10% injection and a $5 million loan cap allow with your cash. The multiple-based band starts from the SDE that would cover debt service at that structure (times 1.25) plus your salary need, then multiplies by your assumed range. If the multiple band sits below the equity ceiling, earnings and household draw are the tighter constraint. If it sits above, your cash and the loan cap bind first. Either way, working capital, closing costs and personal runway still sit outside this sketch.
Sources (live-checked)
- Federal Reserve H.15 Selected Interest Rates (Daily), bank prime loan rate 7.00%, release dated October 29, 2026: federalreserve.gov/releases/h15/
- SBA 7(a) loan overview (maximum loan $5 million): sba.gov/loans/7a-loans/
- SBA maximum variable interest rate spreads and maturity notes: sba.gov/sba-lenders/#7a-terms
- SBA SOP 50 10 (equity injection, Initial Acquisition DSC 1.25:1): SOP 50 10 document page
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How does this free rough-budget calculator work?
It takes your investable cash (and optional retirement funds), applies a 10% minimum equity injection ceiling, caps the loan at the SBA 7(a) maximum of $5 million, estimates debt service at prime plus the SBA maximum variable-rate spread over a 10-year term, then shows the seller's discretionary earnings needed for 1.25x coverage plus your salary need, and a rough price band at your chosen SDE multiples.
Is this calculator a loan approval or lending decision?
No. This is a free rough-budget tool only. It is not a loan offer, approval, or a statement of what you can afford. Lenders decide using their own criteria, your full finances, and the specific business. Figures are estimates from the assumptions shown, which change. It is not financial, legal, tax, or lending advice.
What interest rate does the calculator use?
It uses the Federal Reserve H.15 bank prime loan rate plus the SBA maximum variable-rate spread for the estimated loan size. Lenders often price below that ceiling. You can treat the result as a conservative sketch until you have a quote.
Why do I enter a salary or household income need?
SBA Initial Acquisition coverage looks at debt service coverage on the business. Your household still needs a draw. Adding a salary need shows the earnings a business must produce to cover the loan and pay you.
Does this calculator say what I can afford or whether a lender will approve me?
No. This is a free rough-budget tool only. It is not a loan offer, approval, or a statement of what you can afford. Lenders decide using their own criteria, your full finances, and the specific business. Figures are estimates from the assumptions shown, which change. It is not financial, legal, tax, or lending advice.