ROI & Payback Calculator
Thinking of buying a business? Calculate the pre-tax return on investment and how long it would take to recoup your purchase price. See how business ownership compares to other investments.
The total price being asked or proposed for the business.
Seller's Discretionary Earnings — the total financial benefit a single owner-operator derives from the business.
Your expected annual salary. This lets us calculate your cash-on-cash return after paying yourself.
Understanding business ROI
Pre-Tax ROI measures the annual return you get on your investment before tax. It's calculated as SDE divided by the purchase price — the same formula used in Bizstats reports.
A higher ROI means more earnings per dollar invested. In the NZ SME market, Pre-Tax ROI typically ranges from 30% to 70%, depending on the industry, risk profile, and growth potential of the business.
The payback period tells you how many years of earnings it would take to recover the full purchase price. A shorter payback period means a faster return on your capital.