Owner Exit — Partner Buyout Calculator

Buying Out a Partner
or Being Bought Out?

Model the fair value of a partner's interest and compare four buyout structures: cash, installment, refinance, and earn-out. See total cost, monthly payments, and tax implications for each party.

Business & ownership details

Model the buyout from either side — buying out a partner or structuring your own exit.

Total business value

Departing partner ownership (%)

40%

5%95%

Departing partner's cost basis in the business

Their original investment + retained earnings attributed to them

Business annual EBITDA

Used to assess installment and refinance affordability

Existing business debt

Cash available for buyout

Installment / refinance terms

Interest rate if installment sale (%)

Installment term (years)

Federal capital gains rate (departing partner)

State capital gains rate (%)

Fair Value of Departing Partner Interest

—

Capital gain to departing partner

—

Above their cost basis

Tax on cash buyout (departing)

—

Year of sale

Installment monthly payment

—

To departing partner

EBITDA coverage of installment

—

After existing debt service

Buyout Structure Comparison

Structure	Total Cost	Monthly Pmt	Tax (Departing)	Feasibility

Tax Analysis — Departing Partner

Interest being sold

—

Cost basis

—

Capital gain

—

Tax at cash buyout

—

Tax year 1 at installment (gain % of payments)

—

Tax savings via installment vs. cash

—

Selling your entire interest?
Model the full business sale structure including SBA financing and deal terms.

Exit Structure Modeler →

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Enter your business and ownership details, then click Calculate partner buyout.

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Buying Out a Partneror Being Bought Out?

Buying Out a Partner
or Being Bought Out?