Calculator
Partner buyout calculator
Estimates only. Educational only; not legal, tax or financial advice. No guarantee of savings or approval.
Monthly payment
$7,136.14
DSCR (incl. existing debt)
1.37x
At or above the 1.25x many lenders look for.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a financing specialistThe formulas
Financed amount = buyout price × share financed
Payment = P × r ÷ (1 − (1 + r)^−n)
Total debt service = payment × 12 + existing annual debt
DSCR = annual cash flow ÷ total debt service
Worked example (illustrative numbers)
- Buyout $600,000; 90% financed → $540,000 loan, $60,000 cash (illustrative)
- 10.00% for 10 years → ≈ $7,136/month
- Existing debt $60,000/year → total ≈ $145,634/year
- Cash flow $200,000 → DSCR ≈ 1.37x
Key takeaways
Common questions
What cash flow should I enter?
Cash flow available for debt after a fair salary for the remaining owner. Lenders compute it their own way.
Can I finance 100% of a buyout?
Some lenders finance most or all of it for strong businesses; many expect some cash or a partner note. It varies.
Does an SBA loan work for a partner buyout?
Often yes, under current SBA change-of-ownership rules. Confirm current requirements with a lender.
Is this DSCR guaranteed to satisfy a lender?
No. It is an estimate; lenders decide.
Keep learning
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