Maplewood Advances, a Paragould, Arkansas small-business funding service, offers this purchase loan calculator. Results reflect your own inputs; actual rates and terms are set by funding partners.
Amount, Rate and Months: Inputs the Small Business Purchase Loan Calculator Uses
- Amount: the price of the business, less your down payment and any part the seller will carry on a note.
- Interest rate: the annual rate shown on a quote. Without a quote, try two or three rates to see the range.
- Term: the number of months. Try the same amount at several terms.
Behind the numbers: one fixed rate, and the same payment every month. Nothing you type is sent anywhere.
For a purchase with several parts, run each part on its own. A term loan for the business, an equipment loan for the machines and a seller note each have their own amount, rate and term; the monthly cost of the deal is the sum of the three payments, and the business has to carry all of them from the first month after closing.
Business Purchase Loan Calculator for Greene County, AR Restaurant Owners
Illustration only, invented figures: a buyer agrees to pay $180,000 for a Paragould restaurant, puts $27,000 down and finances $153,000 over 84 months at an invented annual rate of 11%. The payment is about $2,620 a month, with $67,058 in interest over the term (our arithmetic).
Set that payment against the restaurant's recent monthly profit before the seller's own salary, and leave room for a slow month and for replacing equipment the price did not cover.
An Invented Business Purchase at Three Loan Lengths
Illustration only, invented figures: $360,000 financed at an invented annual rate of 10%. All results are our arithmetic.
| Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 60 months | $7,649 | $98,936 | $458,936 |
| 84 months | $5,976 | $142,020 | $502,020 |
| 120 months | $4,757 | $210,891 | $570,891 |
Doubling the term from 60 to 120 months lowers the payment by $2,892 a month and adds $111,955 in interest (our arithmetic).
Reading Small Business Purchase Loan Calculator Results for a Paragould, AR Retail Store
Illustration only, invented figures: a Paragould retail store bought with $95,000 financed over 60 months at an invented annual rate of 12% costs about $2,113 a month (our arithmetic). Compare that with the store's slowest months, not its average, since a store's sales can swing through the year.
If the price includes a large stock of inventory, ask whether part of it can be financed separately and paid down as it sells.
Running the Purchase Loan Calculator on a Paragould, AR Contractor's Buyout
Illustration only, invented figures: a contractor buys out a partner's half of the business for $120,000, financed over 48 months at an invented annual rate of 10.5%. The payment is about $3,072 a month and the interest $27,475 (our arithmetic).
A partner buyout leaves the crew, the equipment and the customers in place, so the review leans on the business's own history.
Costs a Purchase Loan Calculator Leaves Out
- Fees charged at closing, such as origination or documentation fees.
- A seller note's own payment, if part of the price is carried by the seller.
- Variable rates, balloon payments or interest-only periods.
- Working capital the business needs after closing.
- Closing costs for any real estate in the sale.
A seller note can be set up with its own schedule, sometimes with payments deferred for a period after closing. Add its payment to the calculator result once it starts, so the month the deferral ends does not come as a surprise.
Ready to compare real terms? The term loan page covers acquisitions, the buying a business guide lists the records, and the request form starts a request.
By Maplewood Advances · Updated
