Analysis & valuation
What might the business be worth? A first, honest range
A small business valuation calculator: owners enter annual earnings (SDE or EBITDA), a valuation multiple and cash or other assets to get a rough value with a low and high estimate.
Included in Network. 14-day trial, cancel any time.
How do you estimate what a small business is worth?
A common shortcut multiplies annual earnings, seller's discretionary earnings for owner-run firms or EBITDA for larger ones, by a multiple typical of the industry, then adds cash and other non-operating assets. The result is a rough range, not an appraisal; formal valuations weigh several methods, comparables and risk.
When an owner starts thinking about an exit
A buyer's approach, a partner's departure, a divorce or simply turning 60 makes owners curious. They want a ballpark before they spend money on a formal valuation or talk to a broker.
What the client types into a search box
“how much is my business worth”
How a client works through it
Enter annual earnings
SDE or EBITDA.
Choose a multiple
Typical for the industry and size.
Add cash and other assets
Assets not needed to run the business.
See the range
Estimated value with low and high estimates.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
Earnings, the multiple chosen and assets show business size and the owner's expectations. A high multiple may reflect optimism worth discussing; large earnings suggest a significant exit planning opportunity.
Reading a valuation range
Estimated Value applies the multiple to earnings and adds other assets. Low Estimate and High Estimate give a range around it. Implied Multiple shows the effective multiple including assets.
The multiple is the biggest source of uncertainty; small changes move the value a lot.
Results shown: Estimated Value · Low Estimate · High Estimate · Implied Multiple.
Why valuation curiosity is a long engagement
Exit planning takes years: cleaning up financials, improving earnings quality, tax-efficient deal structure and personal financial planning for the proceeds. A firm that is there at the first question can be there throughout.
CPA firms can offer quality-of-earnings work and tax structuring; advisers plan the wealth that follows.
Follow-ups this request opens
- Normalize earnings for a credible valuation
- Plan deal structure and taxes on a sale
- Build a personal financial plan for the proceeds
- Arrange a formal valuation if needed
What this calculator leaves out
- Single method; no comparables or discounted cash flow.
- Earnings are taken as entered, not normalized.
- Debt and working capital adjustments not modeled.
- Not an appraisal.
Platform disclaimer shown under the calculator: Rough estimate only. Real business valuations use multiple methods, market comparables and professional judgment. Consult a qualified appraiser.
Compliance note for firms
Valuation for tax, litigation or financial reporting purposes requires credentialed work under professional standards. Make clear that the calculator gives an illustrative range only, and avoid quoting it in documents for those purposes.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Earnings multiple
- The number by which annual earnings are multiplied to estimate a business’s value. It reflects industry, growth, risk and how dependent the business is on its owner. Small businesses often sell for 2 to 4 times earnings, but the right multiple comes from comparable sales. This calculator shows a range one turn below and above your choice.
- Seller’s discretionary earnings (SDE)
- Pre-tax profit before interest, depreciation and amortization, with one owner’s salary, benefits and personal or one-time expenses added back. It shows the total cash benefit available to a single owner-operator and is the usual earnings measure for owner-run small businesses. Add-backs must be documented to hold up with buyers.
- EBITDA
- Earnings before interest, taxes, depreciation and amortization. Unlike SDE, it treats the owner’s market-rate salary as an expense, so it fits larger businesses run by paid management. Because EBITDA is lower than SDE for the same business, the multiples applied to it are typically higher; do not mix the two.
- Estimated value
- Annual earnings times the valuation multiple, plus any cash or saleable assets entered. It is a rough starting point, not an appraisal. Actual sale prices depend on deal terms, working capital, debt, lease transferability and buyer financing, and professional valuations weigh several methods and market comparables.
- Valuation range
- The low and high estimates shown alongside the main value, calculated with a multiple one lower and one higher than the one entered. Because earnings are multiplied, a single turn of the multiple moves the value by a full year of earnings, which shows how sensitive the result is to that assumption.
- Cash and other assets
- Cash or saleable assets that are not needed to produce the earnings and are added on top of the earnings-based value, such as excess cash, surplus equipment or real estate. Assets the business needs to operate are already reflected in the multiple, so adding them again would double-count.
Business Valuation calculator: questions from firms and clients
What's SDE?
Seller's discretionary earnings: profit plus owner pay and discretionary expenses, used for owner-run businesses.
What multiple should I use?
It depends on industry, size and risk; brokers and appraisers can advise.
Is this an appraisal?
No, a rough range for planning.
Does debt reduce the value?
Buyers usually pay for the business free of debt; sellers pay off debt from proceeds.
How is a sale taxed?
It depends on asset versus stock sale and allocation. Ask your CPA early.
Can I increase my value?
Yes, through cleaner financials, recurring revenue and less owner dependence.
Is this useful for buy-sell agreements?
As a start, but agreements need a defined valuation method.
Which plan includes it?
Network. See pricing.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
Clients who ask this usually ask next
Profit Margin
what is a good profit margin for my business
Financial Ratios
what ratios do banks look at for a business loan
Estate Tax Planning
will my kids have to pay estate tax
All “Analysis & valuation” calculators · Everything in Business
Next entry
Answer the September question before the client calls
Embed the Business Valuation calculator on your firm's site in an afternoon and receive requests with the numbers already filled in.
Firm and Network plans include a 14-day trial. Cancel before it ends and you pay nothing.