Honest deal math for buying a convenience store, restaurant, or service business. It pays you a fair wage first, then shows what is really left. This works on your numbers, it does not tell you what a business should sell for. Your accountant does that.
Use the numbers from the business's financial statements and tax returns only. Never listing claims, and never unverifiable cash sales. If it is not on paper, it does not go in here.
Your numbers
From the statements. Preloaded with an example. Everything stays on your device.
The business's numbers
from the tax returns
$
$
%
Operating expenses, a year
$
not you
$
$
$
$
$
$
$
of revenue
%
$
Pay yourself first
what a manager would cost
$
Listings often advertise cash flow that includes the owner working full time for free. Real profit is what is left after the business pays you a fair wage for your hours.
The deal
$
$
10k to 25k
$
$
cash to run it
$
Financing
$
%
business loans compound monthly
years
The Canada Small Business Financing Program and vendor take backs can help fund a purchase. Lenders finance documented income only. Ask about them.
Your target
years
%
True annual free cash flow to you
$0
Gross profit$0
Operating expenses$0
Profit before owner wage and debt$0
Roughly what listings call cash flow or SDE
Your market wage$0
Annual debt service$0
True free cash flow to you$0
Total cash invested$0
Payback period0
Cash on cash return0%
Break even monthly revenuethe sales you need to cover everything$0
Your numbers support paying up to
$0
That is your math, not the business's value. Your accountant confirms whether the numbers themselves are real.
At your target0
Profit before owner wage and debt$0
After your market wage$0
Loan held at the same share of price0%
Read this the right way
This is the most your own numbers can justify paying to hit your target, holding your financing share and costs steady. It is not what the business is priced at, and not a substitute for an accountant reviewing the real statements.
Looking at a store or a restaurant? Run your numbers here first, then send them to me. I will help you read them honestly and get you in front of a good accountant before you make an offer.
A quick, honest note. This is educational deal math on the numbers you enter. It shows what your own inputs imply, not what a business should sell for, and it is not financial, tax, or accounting advice. An accountant must review the actual financial statements and tax returns, normalize the one time items, and advise on the deal structure before you make any offer. Do not rely on listing claims or unverifiable cash. This tool covers a business's operating numbers only, never the real estate, which the DSCR and cap rate calculators handle.
