Financing calculator
Can the company afford its own takeover?
Enter the purchase price, equity and vendor loan. The calculator works out the bank loan, the yearly rate for interest and repayment, and how well the profit covers it. Everything runs in your browser, nothing is saved.
How the calculator works
For each loan, a constant yearly rate (annuity) is calculated: A = K × qⁿ × (q − 1) / (qⁿ − 1) with q = 1 + interest/100. At 0% interest, the rate is simply the amount divided by the term. The sum of both rates is the debt service, the coverage ratio is profit divided by debt service. You can read more about the building blocks in the article Financing a business takeover.
FAQ
Frequently asked questions
What is debt service?
The sum of interest and repayment you pay per year for all loans. It has to come from the company's ongoing profit.
What does the coverage ratio mean?
It shows how many times the profit covers the debt service. A value of 1.5 means half of the debt service is left as a buffer after interest and repayment.
Which profit belongs in the calculator?
The profit before interest, after deducting a reasonable salary for you as managing director. Take out private costs and one-off effects beforehand.
Why a vendor loan?
It lowers the bank loan, shows the bank that the owner believes in the company, and often carries a lower interest rate. Term and subordination are agreed individually.
Are my entries saved?
No. The calculation runs entirely in your browser. No data is transmitted or saved.
We build the financing together with you
In the programme, you work through financing, funding and bank talks step by step.