Franchise Affordability Calculator
Guidance only. Lenders typically want you to fund 30–50% yourself; confirm your position with a licensed broker.
Why use this tool?
Most first-time buyers overreach on the entry cost and run short of working capital — the number-one cause of early franchise failure. This tool works backwards from your available funds, holds back a buffer for the ramp-up period, and tells you the all-in investment level you can comfortably support, so you shop in the right price band from the start.
Who uses the Franchise Affordability Calculator?
- First-time franchise buyers — who want a realistic budget before they start browsing.
- Redundancy & career-change buyers — deciding how much of a payout or savings to commit.
- Couples & family partnerships — pooling funds and wanting a shared, sensible ceiling.
- Finance brokers — framing an affordable investment range for a client conversation.
How to use it
Find your realistic budget in three steps:
- Enter your available funds. Add your cash savings and any other funds (super rollover, family contribution, redundancy) you're prepared to invest.
- Add your borrowing capacity. Enter how much you could borrow (franchise/equipment loan or a redraw). Be conservative — lenders typically want you to fund 30–50% yourself.
- Set a cash buffer and read your ceiling. Choose how much to hold back for working capital. The tool shows the maximum all-in investment you can afford and suggests matching franchise categories.
Frequently asked questions
How much money do I need to buy a franchise?
It depends on the category: home-based service franchises can start under $50,000, while food, fitness and childcare franchises often need $250,000–$1 million+ all-in. Beyond the purchase price you also need working capital. Use this tool to match a budget to categories you can afford.
How much of a franchise can I finance with a loan?
Lenders typically expect you to contribute 30–50% of the total investment from your own funds, lending the rest against the franchise and equipment. Established franchise systems are viewed more favourably. This calculator lets you enter a realistic borrowing figure.
Why should I keep a cash buffer?
New franchises rarely turn a profit immediately. A working-capital buffer (often 3–6 months of costs) covers wages, rent and stock during ramp-up. Running out of buffer is a leading cause of early failure, so the tool holds a percentage back by default.
What franchise can I afford on $100k?
With around $100,000 all-in you can access most home-based and mobile service franchises (cleaning, lawn, pet, courier) and some lower-cost retail and services formats. Enter your figures for a tailored ceiling, then browse the “under $100K” and low-cost best-of lists.
Is the affordability calculator free and private?
Yes. It is free, runs entirely in your browser, requires no sign-up and stores none of your numbers. It gives guidance only — confirm your position with a licensed finance broker or accountant before committing.