---
title: "Franchise Affordability Calculator"
description: "Estimate what franchise you can afford based on your liquid capital, net worth, and credit — and see brands within your budget."
url: "https://www.franchisegrade.com/affordability-calculator"
canonical: "https://www.franchisegrade.com/affordability-calculator"
markdown_url: "https://www.franchisegrade.com/affordability-calculator.md"
type: "WebApplication"
---

# Franchise Affordability Calculator

Estimate what franchise you can afford based on your liquid capital, net worth, and credit — and see brands within your budget.

Estimate your franchise purchasing power from your liquid capital, net worth, credit range, and financing approach, then see which of 3,000+ franchise systems fall within it.

## What this tool does

- Liquid capital (cash and funds you can access quickly)
- Estimated net worth
- Approximate credit score
- Preferred financing approach (cash, SBA loan, or a combination)
- Estimated franchise purchasing power
- Matching franchise brands within your budget

## Frequently asked questions

### How much franchise can I afford with $100,000 in liquid capital?

With $100,000 liquid and a credit score of 680 or higher, an SBA loan typically supports a total franchise investment of roughly $330,000 to $500,000 — about 3.3 to 5 times your cash. Paying all cash caps you at $100,000. The calculator applies the same multipliers to whatever figures you enter.

### What is the difference between liquid capital and net worth?

Liquid capital is cash and assets you can convert quickly: savings, brokerage accounts, and funds you can access without penalty. Net worth is everything you own minus everything you owe, including home equity. Franchisors set a minimum for both, because liquidity funds the opening and net worth absorbs a slow start.

### How much liquid capital do I need to buy a franchise?

It depends entirely on the system. Every franchisor publishes a minimum liquid capital and a minimum net worth, and you must clear both to be approved. Those figures are disclosed in the Franchise Disclosure Document. The calculator screens more than 3,000 systems against your numbers so you only see brands you qualify for.

### Why do franchisors ask for my credit score?

Because most buyers borrow, and the lender's decision determines whether the deal closes at all. SBA lending generally requires a score of 680 or higher. Below 620, most buyers are limited to what they can pay in cash. Franchisors screen for credit before granting a franchise agreement, not after.

### Is an SBA loan or all cash better for buying a franchise?

Neither is universally better. All cash means no debt service and a faster close, but it caps your investment at your liquid capital. An SBA loan with 680-plus credit stretches the same cash 3.3 to 5 times, in exchange for a personal guarantee and monthly payments against a business with no operating history.

### What is ROBS financing, and does this calculator include it?

ROBS — Rollover as Business Startups — funds a franchise from retirement savings without an early-withdrawal penalty, by rolling a 401(k) into a new C corporation that buys the business. This calculator models three paths only: all cash, an SBA loan, or a combination of the two. ROBS is not one of them.

### Does the calculator include working capital and opening costs?

Your purchasing power is compared against each brand's total initial investment, which already covers the franchise fee, build-out, equipment, and initial inventory. It does not add a reserve for your personal living expenses while the unit ramps up. Budget that separately — most buyers need several months of it.

### Does using the affordability calculator affect my credit score?

No. The calculator asks you to select an approximate credit range and never pulls your credit file, so there is no hard or soft inquiry and no effect on your score. It is free, needs no account to run, and Franchise Grade is a research firm — not a broker or a lender.

---

*Source: [FranchiseGrade](https://www.franchisegrade.com) — independent, FDD-derived franchise research.*
*Cite this page as: https://www.franchisegrade.com/affordability-calculator*
*Training, indexing and quotation are permitted — please attribute and link to the source URL above. Full-text reproduction of the whole page is not. Licensing: privacy@franchisegrade.com*