Calculators

Numbers you can check yourself.

Tools for the questions that come up before a file is even opened. Every one of them runs on figures you supply and shows its working — none of them quotes our pricing or anyone else’s.

The tools

Rent versus buy

Rent never stops. A loan does.

Renting your premises is the one cost that rises every year and leaves you nothing. Owning them is a payment that falls every month and ends. Put your own numbers in and see where the two lines cross.

The premises

$1.2M
0%
6%
25 yrs
12 mo
$0

What you pay now

$7,000
3%
$0
15 yrs
Leave owner costs at zero if your lease is triple-net — you already pay the taxes, insurance and maintenance either way, so counting them again would tilt the answer. The financing assumption is yours; this site quotes no rates.
Buying ahead
by $0 after 15 years
BuyingRenting
Opening payment$0
First full payment$0
Final payment on the loan$0
Rent, first month$0
Rent by the end$0
Loan clears in
Equity in the building$0
Paid to a landlord$0

Monthly cost, side by side

Owner payment falling against rent rising

A commercial principal-and-interest loan: a fixed slice of principal every month plus interest on what is still owed, so the payment falls as the balance does. Not a blended mortgage payment. Arithmetic on figures you supplied — not an approval, a pre-approval, or an offer.

Practice value

Profit is not earnings, and earnings are what gets financed.

An owner-operator’s take-home mixes two different things: a return on the business, and payment for the clinical work they personally do. A lender separates them, because after the sale someone still has to do the work. This runs the same subtraction, then puts a value on what is left.

The practice

$2.0M
62%
35%
$40,000
4.00×

If you financed it at that price

10%
7%
10 yrs
Running costs means everything the practice spends to open its doors — staff, rent, supplies, lab, admin — but not your own pay, interest, tax or depreciation. Replacing your clinical hours is what an associate would cost to produce what you personally produce; leave it at zero only if you genuinely do no clinical work. The multiple is yours to set: it belongs to your appraiser or accountant, not to us.
$0
adjusted earnings × your multiple
Revenue$0
Less running costs$0
Earnings before paying anyone$0
Less the cost of replacing you$0
EBITDA$0
Plus add-backs$0
Adjusted EBITDA$0
Earnings margin0%
Value as a share of revenue0%
Debt service, first year$0
Times covered by earnings0.00×

Coverage is measured on the first year, when the payment is at its highest, and on earnings after paying someone to do your clinical work. That is the conservative reading and the one worth knowing. Arithmetic on figures you supplied — not a valuation, an approval or an offer.

Cost of the financing

The rate is not the price.

Commercial financing carries costs the rate never shows: a commitment fee, two sets of legal bills, an appraisal, often an environmental report. Add them up and they change what the money actually costs — and the shorter the loan, the harder they bite, because the same dollars are spread over fewer payments.

The facility

$1.5M
6.5%
20 yrs

The costs

1.00%
0.00%
$12,000
$4,500
$3,500
$2,000
Every figure here is yours. This site quotes no lender’s fees and no rates — put in what you have been quoted, or what you want to test. An environmental report is usual where real property secures the loan and unusual where it does not.
$0
of costs, on top of the interest
Commitment fee$0
Arrangement fee$0
Legal, appraisal, environmental, other$0
Costs as a share of the loan0%
Money you actually keep$0
Rate you were quoted0%
What the money really costs0%
Difference0%
Interest over the whole loan$0

“What the money really costs” is the rate that makes the payments you will actually make equal the money you actually keep after the costs come out. It is the only figure that lets you compare two offers priced differently. Arithmetic on figures you supplied — not a quote.

Closing costs

What has to be in the account on closing day.

British Columbia charges a property transfer tax on the building. Alberta charges no transfer tax at all — only a land titles registration fee, which on the same purchase is a fraction of the cost. On a seven-figure clinic that difference is the single largest line on this page.

Where the practice is

The purchase

$2.4M
$600,000
25%

Professional costs

$18,000
$5,000
$4,000
$3,000
GST is normally off here on purpose. A buyer registered for GST self-assesses the tax on their own return rather than handing it to the seller at closing, and where the property is used in the business an offsetting credit is usually claimed on that same return — so it rarely needs funding. On the practice and goodwill, a registered buyer and seller can often elect so no GST applies at all. Tick the box only if your accountant has told you it is real cash on the day, and take the answer from them, not from us.
$0
to have in the account on closing day
Money you put in$0
Property transfer tax$0
GST on the premisesnot funded
Legal$0
Appraisal$0
Environmental and building$0
Accounting and valuation$0
Costs on top of your money in$0

British Columbia’s general property transfer tax runs 1% on the first $200,000, 2% to $2,000,000 and 3% above that; the further 2% above $3,000,000 applies to residential property only, so a clinic or medical building does not pay it. Alberta charges $50 plus $5 per $5,000 to register the transfer and the same again on the mortgage, rounded up to the next $5,000. Rates confirmed against the provincial schedules; they can change, and your lawyer’s statement of adjustments governs.

Restructuring

Debt that is going nowhere.

Most established clinics are not carrying one loan. They are carrying six, added a year at a time — a mortgage, a practice loan, equipment leases, an operating line, a card. Some of them, at the payment being made, will never clear. Put them all in one place and see what the building could carry instead.

What you owe today

Commercial mortgageon the clinic propertyBalanceRate %PaymentRoll in
Practice loangoodwill and acquisitionBalanceRate %PaymentRoll in
Equipment loans and leaseschairs, imaging, fit-outBalanceRate %PaymentRoll in
Operating linerevolving, interest-onlyBalanceRate %PaymentRoll in
Corporate cards and otherwhatever is leftBalanceRate %PaymentRoll in

What it could look like instead

$2.6M
75%
6.5%
20 yrs
10 yrs
Set a balance to zero for anything you do not have. Untick a facility to leave it exactly where it is — a lease with a punishing break cost often stays. Anything already registered against the property still takes up room even when it is left alone, and the calculation accounts for that.
$0
a month, freed up
Going out today$0
Going out after$0
Freed up over a year$0
Rolled into one facility$0
Room against the property$0
Interest before, over the period$0
Interest after, over the period$0
Interest saved over the period$0

The new payment shown is the opening one, the highest it will ever be, because a commercial principal-and-interest loan starts high and falls. Lowering a payment by stretching debt over a longer period can cost more interest in total, so both figures are shown and neither is hidden. Arithmetic on figures you supplied — not an approval or an offer.

Own, or stay associate

The raise nobody can give you.

An associate is paid once, for the clinical work. An owner is paid twice — for the work, and for the business. The first year usually charges for that privilege, because the loan payment starts at its highest. It falls every month after that. Put your own numbers in and find the year it turns.

You today

$180,000

The practice you would buy

$1M
$1.2M
60%

The loan

0%
7%
12 yrs
12 mo
10 yrs
Running costs means everything the practice spends — staff, rent, supplies, lab, admin — but not your own pay: an owner-operator keeps what is left, which is the wage for the clinical work and the profit of the business together. That is the opposite framing from the practice-value tool above, which subtracts the cost of replacing you because that is how a lender sizes a buyer’s debt. Equity counted here is only the loan principal you pay down — your down payment moves money from the bank to the building, and the practice is assumed to hold its value, no more.
Ownership ahead
cash and equity together, over the period
As an associate, each year$0
Owner earnings before the loan$0
Loan payment, year one$0
Take-home as owner, year one$0
Ahead by, year one$0
Ownership pulls ahead
Take-home once the loan ends$0
Equity built over the period$0
Total advantage over the period$0

A commercial principal-and-interest loan: a fixed slice of principal plus interest on what is still owed, so the payment falls as the balance does — which is exactly why there is a computable year where ownership pulls ahead. Arithmetic on figures you supplied. Not tax advice, not a valuation, not an offer; how income is actually drawn from a corporation is a conversation for your accountant.

The whole deal

Projected the way a lender actually reads it.

This is the arithmetic of a real projections package — the kind an accountant prepares and a credit team reads. Each piece of the deal gets its own schedule; the interest-only years get tested against the first year real principal is due; and the answer is the coverage number the file lives or dies on.

See the same idea on a funded file: North Shore medical clinic financing — real estate, leasehold improvements and operating credit underwritten as one project.

The practice’s cash flow

$400,000

The building — leave at zero if leasing

$2M
25 yrs
24 mo

Practice, leaseholds and equipment

$600,000
12 yrs
24 mo

Everything else

$0
4.2%
1.25×
The schedules here are annual, the way projection packages are actually prepared: equal principal over the years left after the interest-only opening, interest on the year’s average balance rounded to the nearest hundred dollars. Tax uses the small-business treatment — 11% up to $500,000 of pre-tax income, 27% on the excess — with depreciation taken as the practice-and-equipment amount over ten years. Your accountant’s real projections will differ in the details; the shape is the same. The rate is yours to change — nothing here is a quote.
0.00×
coverage in the tightest year
Total borrowed$0
Payments in year one$0
First full year — payments$0
…of which principal$0
Tax that year$0
Cash left after interest and tax$0
Coverage that year
Before-tax cash the payments really take$0
Roughly supportable at your target

Principal is repaid from after-tax dollars, so the “before-tax cash” line grosses it up at the small-business rate — that is the number the practice actually has to earn. Modelled on the anonymised projections prepared for a real financed clinic; arithmetic on figures you supplied. Not an approval, a pre-approval, or an offer, and not tax advice.

Get started

A calculator is a starting point, not an answer

Real numbers on a real file come from a conversation. Bring what you have and you will get a straight read on it.