Free Business Valuation Calculator
Estimate what your business is worth in seconds. Enter your revenue and SDE, pick your industry, and see three valuation methods — SDE multiple, revenue multiple, and earnings capitalization — with low/mid/high ranges built from real business-broker benchmarks. Free forever, no signup.
Multiples vary based on size, growth, location, and profitability. These are general ranges for businesses under $5M in value, based on publicly available business-broker transaction data.
Understanding Business Valuation
Most small businesses are valued on SDE — Seller's Discretionary Earnings. That's your net profit plus the owner's salary, owner perks, and one-time expenses added back in. SDE shows what the business actually generates for a single owner-operator, which is what a buyer is really paying for.
A valuation multiple is just how many years of that earning power a buyer will pay up front. A 3× SDE multiple means the price is about three times one year's SDE. Multiples vary by industry because some businesses are more stable, more scalable, or less dependent on the owner — a SaaS company commands a far higher multiple than a single-location restaurant.
The result is a range, not a single number, because two businesses with identical earnings can be worth very different amounts. Growth trend, customer concentration, recurring revenue, clean books, and how much the business depends on you personally all move the price within (and sometimes beyond) the industry range.
Treat this as a directional estimate, not an appraisal. For an actual transaction — selling, buying, a partnership buyout, an SBA loan, a divorce or estate matter — get a professional valuation from a business broker, CPA, or accredited appraiser, especially above roughly $500K in value.
Factors That Increase Your Business Value
- Recurring or repeat revenue (subscriptions, contracts, loyal customers).
- A diversified customer base — no single client is more than ~10–15% of revenue.
- Systems and a team that run without the owner in the building.
- A consistent growth trajectory over the last 2–3 years.
- Clean, accurate financial records a buyer's accountant can trust.
- Long-term contracts, leases, or supplier agreements that transfer to a new owner.
Why use this generator
- Owner considering selling and wanting a realistic asking-price range before talking to brokers.
- Buyer sizing up an acquisition target against industry benchmarks.
- Partners negotiating a buy-in or buy-out and needing a starting number.
- Owner planning succession or estate transfer who needs a ballpark value.
- Founder preparing for an SBA loan or investor conversation.
How it works
- 1Choose your industry — each carries its own broker-derived multiple range.
- 2Enter annual revenue and SDE (net profit + owner salary + perks + one-time costs).
- 3Optionally add net profit to unlock the earnings-capitalization method, and a growth rate.
- 4Read the three methods with low / mid / high ranges; the SDE mid is your headline estimate.
- 5Use the factors list to judge whether you sit at the low or high end of the range.
Frequently asked questions
- How much is my business worth?
- For most small businesses, value ≈ SDE × an industry multiple (commonly 1.5–8×, depending on the industry, size, growth, and how dependent the business is on the owner). Enter your numbers above for an instant low/mid/high estimate across three methods.
- What is SDE?
- Seller's Discretionary Earnings — the total financial benefit a single full-time owner-operator gets from the business. Start with net profit, then add back the owner's salary, owner perks (car, phone, health insurance run through the business), and one-time or non-recurring expenses. SDE is the standard earnings figure for valuing owner-operated businesses under ~$5M.
- What is a good SDE multiple?
- It varies by industry: restaurants, retail, and trades typically sell for 1.5–3× SDE; professional services and e-commerce around 2–4×; healthcare 3–6×; technology/SaaS 3–8×. Higher multiples go to businesses with recurring revenue, strong growth, and low owner-dependence.
- How do I increase my business value?
- Build recurring revenue, diversify your customer base, document systems so the business runs without you, show a clear growth trend, and keep clean financial records. Each of these pushes you toward the high end of your industry's multiple range — often worth more than a year of extra profit.
- Should I get a professional business valuation?
- Yes for anything that matters legally or financially: a sale or purchase over ~$500K, partnership buy-ins/buy-outs, SBA loans, litigation, divorce, or estate planning. This calculator is a fast directional estimate; a broker, CPA, or accredited appraiser produces a defensible number.
Planning to sell? You'll need an NDA for buyer discussions. And clean financials increase your valuation — start with professional invoices.