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Acquisition Calculator

Deal Viability Calculator

Will the cash flow cover the debt? Slide the inputs to model an SBA-financed acquisition over its 10-year amortization. The chart shows cash flow after debt service per year; the verdict pill calls out whether a lender will approve and whether you'll have buffer for surprises.

Deal Viability Calculator · Self-StorageDefaults from Self-Storage typicals ·

Will the cash flow cover the debt?

$180,000
$60,000$600,000
7.00× SDE
4.00× SDE12.00× SDE
25%
10%30%
11.0%
9.0%14.0%
$40,000
$0$80,000
Annual cash flow after debt service
-$16,209 / yr
Purchase: $1.26M · SBA loan: $945K · Annual debt service: $156K
Won't qualifyYear-1 DSCR is 0.90×, below the SBA 1.15× floor. As structured, the lender will not approve.

How this works

The math is standard SBA 7(a) acquisition modeling. We compute the purchase price as SDE × multiple, the loan amount as purchase price minus down payment, and the level-payment monthly amortization at the chosen rate over a 10-year term — the SBA's standard term for goodwill-heavy acquisitions where no real estate is included.

The verdict pill is driven by the year-1 DSCR (the ratio of cash available for debt service to the actual annual debt service). The thresholds match SBA convention: 1.15× is the floor most SBA-preferred lenders enforce, 1.25× is what conservative banks want to see, and 1.50× and up is comfortable buffer territory. The shaded bands on the chart correspond to those thresholds.

Down payment is bounded at 10% — the minimum equity injection required by SOP 50 10 8 (effective June 1, 2025). Rates are bounded at the realistic 2026 range; the SBA caps variable-rate 7(a) loans at Prime + 3.0%.

What this calculator doesn't model

  • SBA guarantee fee. Typically 2–3.5% on the guaranteed portion of loans over $500K, financed into the loan. Materially affects total cost but not first-year DSCR.
  • Working capital. A real deal needs cash at close for working capital, deal costs, and a runway buffer beyond the down payment.
  • Variable rates. Most 7(a) loans float with Prime. We treat the slider rate as fixed for projection purposes — slide up to model what happens if rates rise.
  • Seller note effects. Seller financing on full standby can count toward up to half the equity injection. Model it separately with the Seller Note Builder.
Deal Viability Calculator | DealScorer