Forgivable Seller Note Calculator
Model seller financing structures with performance-based forgiveness provisions. See how different scenarios affect your effective purchase price.
Deal Structure
Note Amount: $150,000
Forgiveness Terms
Earnings Before Interest, Taxes, Depreciation & Amortization
Cash at Close
$850,000
Seller Note
$150,000
Monthly Payment
$2,899.92
Total Interest
$23,995
Forgiveness Scenarios
See how different EBITDA declines affect your effective purchase price.
| EBITDA Decline | Forgiven | Remaining Note | Effective Price | Savings |
|---|---|---|---|---|
| No decline | — | $150,000 | $1,000,000 | — |
| -10% | — | $150,000 | $1,000,000 | — |
| -15% | $15,000 | $135,000 | $985,000 | 1.5% |
| -20% | $30,000 | $120,000 | $970,000 | 3.0% |
| -25% | $45,000 | $105,000 | $955,000 | 4.5% |
| -30% | $60,000 | $90,000 | $940,000 | 6.0% |
| -40% | $90,000 | $60,000 | $910,000 | 9.0% |
| -50% | $120,000 | $30,000 | $880,000 | 12.0% |
How Forgiveness Works
With a 10% threshold and 2x ratio: if EBITDA declines by 20%, that's 10% beyond the threshold, triggering 20% note forgiveness ($30,000).
Important Disclaimer
This calculator provides estimates for educational purposes only. Actual deal structures should be reviewed by qualified M&A advisors, attorneys, and accountants. Forgiveness terms vary significantly by transaction and must comply with applicable regulations (including SBA requirements if applicable). Contact us for guidance on structuring your specific transaction.
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