Franchise Affordability Calculator
How much franchise can you actually afford? Honest answer, instantly. Free. No signup.
Enter your cash (or tap an amount) and your answer appears here.
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How much franchise can I afford?
Most buyers can afford a total franchise investment of about 3 to 5 times the cash they have left after setting aside six to twelve months of living expenses, if they finance with an SBA loan. Paying all cash, the budget is that leftover cash and nothing more. Either way, the number should not exceed your net worth. Compare it to the high end of a brand's Item 7 estimate in its Franchise Disclosure Document, not the franchise fee.
How the math works
- 1
Hold back a living cushion
Monthly living costs times the months you want covered. This money never goes into the deal.
- 2
What's left is your cash in
Liquid cash minus the cushion. Paying all cash, this is your whole budget.
- 3
Add the loan
With an SBA loan, lenders usually want 20–30% of the total project from you. Your cash divided by 0.30 and by 0.20 gives the range.
- 4
Cap it at your net worth
Lenders and franchisors rarely back a total investment bigger than everything you own, so the range stops there. Figures round down to the nearest $5k.
How much franchise can I afford with $50k, $100k, $250k, or $500k?
Same math as the calculator, with a 6-month cushion at $5k a month and net worth not the limit.
| Cash | All cash | SBA loan |
|---|---|---|
| $50k | $20k | $65k–$100k |
| $100k | $70k | $230k–$350k |
| $250k | $220k | $730k–$1.1M |
| $500k | $470k | $1.56M–$2.35M |
Frequently asked questions
Can I afford a franchise with $50,000?
With $50k in cash and a 6-month cushion at $5k a month, about $20k is free to invest. Paying all cash, that's your budget. With an SBA loan at 20–30% down, it stretches to roughly $65k–$100k in total investment. That's home-based and mobile service territory, and it leaves no room for a slow start.
Can I afford a franchise with $100,000?
With $100k in cash and a 6-month cushion at $5k a month, about $70k is free to invest. Paying all cash, that's your budget. With an SBA loan at 20–30% down, it stretches to roughly $230k–$350k in total investment. That opens most service brands and some small-footprint concepts, but rarely a full restaurant build-out.
What's the difference between liquid capital and net worth?
Liquid capital is money you can reach quickly without penalty: cash, savings, and brokerage accounts. Net worth is everything you own minus everything you owe, including home equity and retirement accounts. Franchisors set a minimum for both, and you have to clear both to be approved.
How much down payment do I need for an SBA franchise loan?
The SBA requires at least 10% of the total project cost from the buyer for a start-up, a rule restored on June 1, 2025 and carried into SOP 50 10 8.1 on October 1, 2026. Most lenders ask for 20–30% on a new franchise unit, which is what this calculator uses. The brand also has to be listed in the SBA Franchise Directory, so check that before you count on the loan.
Why does the calculator hold back living expenses?
Because a new franchise rarely pays its owner right away. The working capital in a brand's Item 7 estimate keeps the business running, not your mortgage — and it runs thin: 91.5% of disclosure documents filed in 2025–26 budget exactly three months of it, the regulatory minimum, generally excluding anything for your own living costs. Six months of personal expenses is the minimum cushion; twelve is safer for restaurants and gyms, which tend to ramp slowly.
Is the franchise fee the total cost of a franchise?
No. The franchise fee is one line. Item 7 of the Franchise Disclosure Document lists the full estimated initial investment: fee, build-out, equipment, inventory, and opening working capital. Compare your budget to the high end of that range, not the fee — across 259 disclosure documents filed in 2025–26 the high end runs a median 1.92× the low, because the low end assumes the best-case site.
Does this calculator save my numbers or check my credit?
No. The math runs in your browser. Nothing you type is sent to us or stored, and there's no credit check and no signup.
I know my budget. What should I do next?
Pressure-test the brand you're eyeing. The free franchise fit check scores any brand 0–100 against your capital, experience, and goals, and lists the dealbreakers in about 30 seconds.
Reviewed against current SBA 7(a) rules. Estimates for education, not financial advice. Lender and franchisor requirements vary; confirm yours before you sign. See how the fit score works and our terms.
Working-capital and investment-range statistics: Franchise Consultants and Brokers, analysis of 259 disclosure documents filed 2025–26, CC BY 4.0.