Free · No sign-up
What Will It Cost to Buy a Restaurant?
See your estimated monthly payment in seconds — and compare an SBA/bank loan vs. seller financing by price, down payment, rate, and term.
SBA 7(a) loans for a restaurant business commonly run ~10 years at a variable rate. Just a starting point — adjust below.
The restaurant's asking or agreed price.
Annual rate. SBA is often ~10–12%; seller notes vary.
Estimated monthly payment
$2,755/mo
Amount financed
$200,000
Down payment
$50,000
Total interest
$130,600
Estimate only — actual terms depend on the lender, the deal, and your financials. Not a loan offer or financial advice. Learn more about seller financing and SBA loans.
How restaurant financing works
Most people don't buy a restaurant with all cash. They put money down and finance the rest — and your monthly payment comes down to four things: the price, how much you put down, the interest rate, and the length of the loan.
- SBA / bank loan. The most common path. SBA 7(a) loans for a restaurant business often run around 10 years, usually need roughly 10–20% down, and carry a variable rate. Longer terms mean lower monthly payments but more total interest.
- Seller financing. The owner lets you pay part of the price over time. Terms are negotiable — often a bigger down payment and a shorter term, but a rate you agree on directly. It can be the difference between closing a deal and not. Read our seller financing guide.
- A mix. Many deals combine your cash, an SBA loan, and a seller note — spreading the risk and lowering what you need up front.
Remember the loan payment is just one line in your budget. You'll also cover rent, payroll, food cost, and a working-capital cushion. For the full picture, start with how to buy a restaurant and the SBA loan guide.
Frequently asked questions
How much does it cost per month to buy a restaurant?+
Your monthly cost depends on the purchase price, your down payment, the interest rate, and the loan term. For example, financing $200,000 over 10 years at 11% works out to roughly $2,750 a month. Use the calculator above to plug in your own numbers — and remember this is just the financing payment, on top of rent, payroll, food cost, and other operating expenses.
How much down payment do I need to buy a restaurant?+
It varies by how you finance it. SBA 7(a) business-acquisition loans often require around 10–20% down. Seller-financed deals are negotiable and frequently involve a larger down payment (often 20–50%) since the seller is taking on the risk of carrying the note. A bigger down payment lowers your monthly payment and total interest.
SBA loan vs. seller financing — which is cheaper?+
It depends on the terms. SBA loans typically offer longer terms (often ~10 years for a business), which lowers the monthly payment but stretches out interest. Seller financing is fully negotiable — sometimes a lower rate or shorter term, but usually a larger down payment. Toggle between the two in the calculator to compare monthly payments side by side, and read our guides on each before deciding.
Is this calculator a loan offer or financial advice?+
No. It's a free estimate to help you understand what a restaurant purchase might cost per month before you start shopping. Actual rates, terms, and approval depend on the lender or seller, your financials, and the specific deal. Talk to an SBA lender, the seller, and your accountant for real numbers.
What else should I budget for beyond the loan payment?+
The loan payment is only one piece. Budget for rent (or mortgage if you own the real estate), payroll, food and beverage cost, utilities, insurance, licensing, marketing, and a working-capital cushion for the first few months. Many buyers underestimate working capital — make sure you have enough runway to operate while you settle in.
Know your budget? Find your restaurant.
ListingLedge is built exclusively for hospitality — browse restaurants for sale and lease, set a free alert, and deal directly.
Browse restaurants for sale →