Acquisition financing calculator
The calculator shows the debt service from bank and vendor loans, how well cash flow covers it and how the outstanding debt develops year by year.
Debt service in year one
€132,990 a year
€11,083 a month | Debt service cover 1.58 (sound)
- Funding need incl. costs
- €945,000
- Bank loan
- €645,000
- Equity ratio
- 15.9%
- Interest over the term
- €169,475
- Price divided by cash flow
- 4.3 years
12345678
| Year | Debt service | of which interest | Outstanding |
|---|---|---|---|
| 1 | €132,990 | €39,324 | €701,334 |
| 2 | €132,990 | €34,474 | €602,817 |
| 3 | €132,990 | €29,368 | €499,194 |
| 4 | €132,990 | €23,992 | €390,195 |
| 5 | €132,990 | €18,332 | €275,536 |
| 6 | €99,841 | €12,987 | €188,682 |
| 7 | €99,841 | €8,087 | €96,929 |
| 8 | €99,841 | €2,912 | €0 |
Annuity loans with monthly instalments, without repayment holidays or public funding. Many banks look for a debt service cover of at least 1.2 to 1.3.
How to use the calculator
- Enter the purchase price and transaction costs.
- Enter your equity and any vendor loan with rate and term. The bank covers the rest in the model.
- Cash flow for debt service is the money left after tax, investment and your own salary.
- Debt service cover shows how much headroom remains. Many banks look for at least 1.2 to 1.3.
Frequently asked questions
What is debt service cover?
The ratio of available cash flow to annual debt service. A value of 1.3 means cash flow is 30% higher than interest and repayment combined.
Is public funding included?
Not separately. You can approximate a promotional loan by adjusting the bank’s rate and term.
Why does a vendor loan help?
It lowers the bank’s share, shows the bank the seller’s confidence and spreads the price over several years.