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Owner pay calculator: what’s left after debt and a market-rate wage

SDE includes the benefit of the owner’s work. After you buy, someone still has to do that work and a lender still has to be paid. This calculator shows what’s left.

How to use this calculator

  1. Enter a recast SDE and the asking price.
  2. Enter down payment, rate, and term. The defaults match the SBA-style planning assumptions used on the DSCR calculator (10% down, 10.5%, 10 years) and should be changed to match a real quote.
  3. Enter what it would cost to hire a manager — or to pay yourself — to do the owner’s job. Use a real local wage, not $0.
  4. If the leftover after debt and that wage is thin, the business may be buying you a job at a discount, or the price is too high.

This is the same idea as coverage, phrased as a paycheck. It does not include taxes, capital replacements, or a reserve. If trucks or machines are due for replacement, leftover pay is smaller than this screen shows.

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FAQ

Why subtract a manager wage if I plan to work in the business?

Because your time has a cost. If the leftover after debt is less than you could earn running a similar route or shop for someone else, the deal is not paying you for ownership risk.

What wage should I use?

A realistic local rate for the job the owner actually does — estimating, selling, turning wrenches, or managing crews. Ask what it would cost to replace that person, not what the seller drew.

Does SDE already include owner pay?

Usually yes. SDE is meant to show cash flow before an owner wage is taken. That is why this calculator starts with SDE, pays the loan, then subtracts a market wage.

What if the leftover is negative?

Then, on these assumptions, the loan and a fair wage do not both fit. You need a lower price, more equity, cheaper money, a higher proven SDE, or a cheaper manager plan — or you should walk.

Disclaimer. Deal Check is not financial, legal, or accounting advice. These pages and calculators are educational planning tools and can miss context. Verify every number with a CPA and a business broker, and do your own due diligence before making an offer.