---
title: "M&A Financing Calculator"
description: "Calculate acquisition financing scenarios including SBA loans, bank financing, seller notes, and earnouts. Compare monthly payments and total costs."
canonical: "https://acquisitionstars.com/tools/financing-calculator"
firm: "Acquisition Stars"
practice: "M&A and securities law"
office: "Novi, Michigan (serves clients nationwide)"
contact: "consult@acquisitionstars.com | 248-266-2790"
---

# M&A Financing Calculator

Model different financing structures and understand the true cost of acquisition capital

## Deal Structure

Purchase Price $

Down Payment (%)

Down Payment: $400,000

Annual EBITDA

$

Purchase Multiple: 4.0x

Working Capital Need $

## Financing Sources

### SBA 7(a) Loan

Amount $

Interest Rate (%)

Term (years)

### Bank/Asset-Based Loan

Amount $

Interest Rate (%)

Term (years)

### Seller Note

Amount $

Interest Rate (%)

Term (years)

### Earnout

Maximum Amount $

Period (years)

Probability (%)

## Financing Analysis

Total Financing $0

Monthly Payment $0

Total Interest $0

DSCR 0.0x

### Payment Schedule

### Cash Flow Analysis

Annual EBITDA: $0

Annual Debt Service: -$0

Est. Taxes (25%): -$0

Working Capital Increase: -$0

Free Cash Flow: $0

Cash-on-Cash Return: 0%

## Scenario Comparison

| Metric | Current | Conservative | Aggressive |
| --- | --- | --- | --- |

### IMPORTANT LEGAL DISCLAIMER

**NO ATTORNEY-CLIENT RELATIONSHIP:** Use of this tool does not create an attorney-client relationship. No attorney-client relationship is formed until you have signed a formal engagement agreement with Acquisition Stars Law Firm PLLC and paid the required retainer.

**NOT LEGAL ADVICE:** The information provided by this tool is for general informational and educational purposes only and is not legal advice. Legal advice requires consideration of your specific circumstances, which this tool cannot provide.

**NO CONFIDENTIALITY:** Information you enter into this tool is NOT protected by attorney-client privilege or confidentiality. Do not submit sensitive or confidential information.

**NO LIABILITY:** Acquisition Stars Law Firm PLLC expressly disclaims all liability with respect to actions taken or not taken based on any content from this tool. Your use of this tool is at your own risk.

**CONSULT AN ATTORNEY:** This tool provides general information only. For any legal matter, including business transactions, you should consult with a qualified attorney who can advise you based on your specific situation.

By continuing to use this tool, you acknowledge that you have read, understood, and agree to this disclaimer.

Financing structure affects your entire deal. Get counsel before you commit. [Request a consultation →](https://acquisitionstars.com/consultation)

### Understanding M&A Financing

#### SBA 7(a) Loans

- • Up to 90% financing for qualified buyers
- • 10-year terms for business acquisitions
- • Personal guarantee required
- • Business must meet SBA size standards

#### Seller Financing

- • Typically 10-30% of purchase price
- • Shows seller confidence in business
- • Often subordinated to bank debt
- • Can improve deal terms and tax treatment

#### DSCR Requirements

- • Most lenders require 1.25x minimum
- • SBA typically requires 1.15x
- • Higher ratios = better loan terms
- • Include all debt service in calculation

#### Earnout Considerations

- • Bridges valuation gaps
- • Typically 1-3 year measurement period
- • Clear, measurable metrics essential
- • Consider accounting and tax implications

## Legal counsel for this topic

Acquisition Stars handles M&A transactions nationwide and works with independent securities counsel on securities matters. Alex Lubyansky leads every engagement.

[Closest fit for this topic M&A attorney M&A attorney for mergers, acquisitions, and divestitures.](https://acquisitionstars.com/ma-attorney)

[M&A attorney services M&A counsel for mergers, acquisitions, and divestitures.](https://acquisitionstars.com/services/mergers-acquisitions)

[Business acquisition lawyer Legal counsel for buyers from letter of intent through closing.](https://acquisitionstars.com/business-acquisition-lawyer)

[Michigan service areas Acquisition Stars serves clients across Michigan and nationwide.](https://acquisitionstars.com/locations)

[Request Engagement Assessment](https://acquisitionstars.com/consultation)

## Related M&A Tools

### Working Capital Calculator

Calculate normalized working capital.

Use Tool →

### Deal Structure Optimizer

Compare deal structures and tax implications.

Use Tool →

### LOI Generator

Create a customized Letter of Intent.

Use Tool →

## Structure Your Deal Right

Financing structure affects everything. Get counsel before you commit.

### Request Engagement Assessment

Submit your transaction details for review.

LOI through closing. Nationwide. 15+ years of M&A experience.

---

Source: https://acquisitionstars.com/tools/financing-calculator

Markdown version generated for machine readers. Canonical HTML at the source URL.