A practical planning tool
Can the acquisition carry the debt?
Model seller-finance repayments, cash available, a balloon reserve and a revenue stress scenario.
Fictional starting values · No account needed · Inputs stay in this page and are not submitted or saved.
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The formula and worked guide below remain available.
How this calculation works
Cash before debt = revenue × (1 − variable-cost percentage) − fixed overheads − replacement owner wage − reserves. Monthly repayments use nominal annual interest divided by 12, payments in arrears, a rounded whole-month term and the selected final balloon. A separate balloon saving target assumes no return. The displayed cover ratio includes that saving target; with no balloon it is ordinary debt-service cover. The stress case reduces revenue and proportionate variable costs only; all other amounts stay fixed. No-debt ratios display “No debt”.
What the model does not tell you
The fictional A$55,000 reserve comprises A$30,000 tax, A$10,000 capital/maintenance and A$15,000 working capital. Replace it with an advised estimate. Do not double-count owner wages already in other costs. The model excludes fees, transaction taxes, rate changes, collection timing and refinancing. It cannot establish viability or registration eligibility.
Educational scenario only. Use verified inputs and appropriate accounting, legal or employment advice for an actual decision.
Read the worked guide ↗