Business Affordability Calculator
Work out what size of business you can realistically buy. Enter the cash you can put down, the financing you expect to qualify for, and the down payment your lender wants — the target price range updates as you type.
How buyers fund a purchase
Almost no one buys a Canadian small business with cash alone. A typical deal stacks three sources: your own capital as the down payment (commonly 20–30% of the price), a term loan from a bank, credit union or BDC, and often a vendor take-back note where the seller finances part of the price over a few years. Add them together and you get the price you can bid on.
Two limits apply at once. Your total budget is cash plus financing — but a lender also won't fund more than a set share of the price, so your cash divided by the required down payment percentage creates a second ceiling. This calculator shows both and takes the tighter one as your realistic target, with the combined figure as the stretch end of the range.
Once you know the number, check what the loan actually costs each month with the business loan calculator, confirm the cash you need up front with the down payment calculator, then compare Canadian lenders. Our guide on how to finance a business purchase in Canada covers each funding source in detail.
This calculator gives an estimate for planning purposes only and is not financial, tax, or legal advice. Confirm all figures with your lender and accountant.
Frequently asked questions
Plan on 20–30% of the purchase price as a down payment, plus 2–5% for legal, accounting and due diligence, plus working capital to run the business for the first few months. On a $500,000 business that's roughly $125,000 down and another $25,000–$50,000 in transaction and operating cash.
Because lenders fund a percentage of the price, not a fixed amount. If they require 25% down, $150,000 of cash only supports a $600,000 purchase no matter how much financing you think you can get. The calculator shows which of the two constraints is actually binding for you.
Often yes. Many Canadian sellers finance 10–20% of the price themselves, which can sit between your down payment and the bank loan. Lenders may treat a postponed vendor note as part of your equity, effectively stretching your budget — confirm the treatment with your lender before relying on it.
No. Buyers who use every dollar on the purchase price and leave nothing for working capital are the ones who struggle in year one. Hold back a cash reserve for payroll, inventory and the surprises that surface after closing.