Business Valuation Calculator
Find out what your business is worth using the two most common valuation methods: revenue multiples and earnings multiples (SDE). Enter your numbers below and get an instant estimate based on real industry data.
This calculator is used by business owners planning to sell, buyers evaluating acquisitions, and anyone who needs a quick baseline valuation before engaging a professional appraiser.
Financial Performance
Total annual gross revenue
Seller's Discretionary Earnings
Earnings before interest, taxes, depreciation & amortization
Current owner's salary & benefits
Business Characteristics
How much owner involvement is needed?
Customer base distribution
Assets & Liabilities
Equipment, inventory, receivables, cash, etc.
Debts, payables, loans, etc.
Net assets (assets - liabilities) are added to the business valuation.
How It Works
Revenue Method: Annual revenue × industry multiple (0.25x - 3.0x)
Earnings Method: SDE × multiple (2.0x - 5.0x)
Growth Adjustment: Based on business growth trends
Industry Multipliers
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- • Include owner salary in SDE calculation
- • Use trailing 12-month numbers
- • Consider one-time expenses
- • Factor in growth potential
How to Use This Calculator
Step 1: Enter Your Annual Revenue
Use your trailing 12-month revenue (the last 12 months of total sales). If your revenue fluctuates seasonally, using a full year ensures accuracy. Do not use projected revenue unless you have contracts to back it up.
Step 2: Enter Your Seller's Discretionary Earnings (SDE)
SDE = net profit + owner's salary + owner's benefits + depreciation + amortization + interest + one-time expenses. This represents the total cash flow available to a single owner-operator. If you're not sure, start with your net profit and add back your salary and any personal expenses run through the business.
Step 3: Select Your Industry
Different industries trade at different multiples. A laundromat with steady cash flow trades at 2-6x SDE, while a restaurant with thin margins trades at 1.5-3x. The calculator applies the appropriate range based on your industry selection.
Step 4: Interpret the Results
You'll get a valuation range (low to high) for both methods. The revenue method is a quick sanity check. The earnings method is what most buyers and brokers actually use. If both methods produce similar ranges, you have a strong indication of fair market value.
What Moves Your Business's Value Up or Down
Increases Value
- +Recurring revenue or long-term contracts
- +Business runs without owner involvement
- +Growing revenue and profit trends
- +Diversified customer base
- +Strong online reputation and brand
- +Clean, well-documented financials
Decreases Value
- -Owner is the primary revenue generator
- -Declining revenue or shrinking margins
- -Customer concentration (top client > 20%)
- -Short lease or unfavorable lease terms
- -Aging equipment needing replacement
- -Messy books or cash-based transactions
Frequently Asked Questions
Want a Professional Valuation?
This calculator gives you a starting range. For an accurate valuation based on your specific business, market conditions, and comparable sales, get a free confidential assessment.
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