ROI & Cash Flow Calculator
Run the numbers on any business acquisition before you commit. Enter the purchase price, your down payment, expected revenue, and operating expenses to see your projected cash-on-cash return, total ROI, and payback period -- the three metrics that tell you whether a deal is worth doing.
This calculator is built for business buyers evaluating acquisition targets, investors comparing deal opportunities, and anyone using SBA loans or seller financing who needs to understand how leverage affects their actual return on invested capital.
Purchase Details
Business Performance
Earnings before interest, taxes, depreciation & amortization
Annual depreciation expense
Current owner's salary & benefits
Additional cash needed for operations
Financing Details
How It Works
Cash-on-Cash: Annual cash flow ÷ total investment
Payback Period: Investment ÷ annual cash flow
5-Year ROI: Total profit ÷ initial investment
ROI Benchmarks
Payback Guidelines
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Explore Funding Options →Quick Tips
- • Include all operating expenses
- • Exclude loan payments from expenses
- • Consider seasonal variations
- • Factor in working capital needs
How to Use This Calculator
Step 1: Enter the Deal Structure
Start with the total purchase price of the business and your planned down payment. If you are using an SBA loan or seller financing, enter only the cash you are putting in out of pocket. The gap between purchase price and down payment is what gets financed, and that leverage is what drives your cash-on-cash return.
Step 2: Enter Revenue and Expenses
Use trailing 12-month figures for annual revenue and total operating expenses. Operating expenses should include rent, payroll, utilities, insurance, supplies, and all other recurring costs. Do not include loan payments or debt service here -- the calculator accounts for financing separately.
Step 3: Add Financing Details
If you are financing part of the purchase, enter the loan amount, interest rate, and loan term. The calculator will compute your monthly and annual debt service, then subtract it from cash flow to show what you actually take home. This is the number that determines your real return on invested capital.
Step 4: Interpret Your Results
Focus on three numbers: cash-on-cash return (your annual cash flow divided by your out-of-pocket investment), payback period (how many years to recoup your down payment), and the debt service coverage ratio (cash flow divided by annual loan payments). A strong deal has 20%+ cash-on-cash, a payback period under 4 years, and a DSCR above 1.25x.
Understanding Your Results
Strong Investment Signals
- +Cash-on-cash return above 20% annually
- +Payback period under 3-4 years
- +Debt service coverage ratio above 1.5x
- +Positive cash flow even in a conservative scenario
- +ROI improves with realistic revenue growth
- +Business covers loan payments plus owner salary
Warning Signs
- -Cash-on-cash return below 10% with no growth path
- -Payback period exceeding 5-6 years
- -Debt service coverage ratio below 1.25x
- -ROI only works under best-case assumptions
- -No cash flow cushion for unexpected expenses
- -Requires immediate revenue increase to break even
Frequently Asked Questions
Ready to Analyze a Real Deal?
This calculator gives you the financial framework. When you find a business worth pursuing, get a free confidential consultation to review the deal structure, financing options, and negotiate the best terms.