Roseland Finance offers this calculator to Mansfield, OH owners pricing the purchase of a business. It computes three things from the amount, rate and term you enter: the monthly payment, the total interest and the total repaid. Working out the amount to borrow, after your cash and any seller note, is a by-hand step explained on this page.
What the calculator computes
- Monthly payment on the amount, rate and term you enter
- Total interest paid over the term
- Total repaid, principal plus interest
It does not know the business, the seller or any partner's terms. The result is an estimate from your inputs, not a quote or an offer.
Before you enter a number: the amount to borrow, by hand
- Start with the agreed or asking price.
- Subtract the cash you will put in yourself.
- Subtract any seller note: the part of the price the seller agrees to be paid over time.
- Add costs you plan to finance, such as working capital to run the business after closing, if the partner allows it.
- The result is the loan amount to enter.
A seller note has its own payment, which the calculator does not include. Run it as a second calculation and add the two payments together.
A worked example with hypothetical figures
A hypothetical buyer agrees to pay $180,000 for a Mansfield, OH service business. The buyer puts in $36,000, and the seller agrees to carry $27,000 as a note. By hand: $180,000 minus $36,000 minus $27,000 leaves $117,000 to borrow.
Enter $117,000, the rate from a real offer or a rate you want to test, and a term. Then run the seller note separately: $27,000 at its own rate and term. Add the two monthly payments. Compare the total with the business's monthly cash flow from the seller's bank statements, not from the listing. All figures are illustrations.
To check the calculator itself, enter any amount with a rate of zero: the total repaid should equal the amount, and the total interest should be zero.
Reading the result against the business
The question is whether the business can carry the payments and still pay its owner. Take the seller's actual deposits and expenses, subtract the payment on the loan and the seller note, and see what remains. If the answer is thin, a longer term, a larger seller note or a lower price are the levers to discuss before signing.
Partners make their own judgment from the seller's records, and their rate and term may differ from what you entered.
Related reading
The term loans page covers acquisition requests, the guide to buying an existing business in Richland County, OH walks through the records to request, and the Mansfield, OH city page has the county's business figures. When the numbers work, the request page is the next step.
By Roseland Finance · Updated
