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Business Valuation Calculator

Estimate a small business's value using the earnings multiple method.

Details

Seller's Discretionary Earnings: net profit plus owner salary, benefits, and one-time expenses.

Small businesses commonly trade at 2-4x SDE; varies significantly by industry and size.

Enter your numbers and select Calculate to see results.

About This Calculator

This calculator estimates a business's value using the earnings multiple (or SDE multiple) method — a common approach for small business valuation that multiplies annual earnings (Seller's Discretionary Earnings or EBITDA) by an industry-typical multiple.

How This Is Calculated

Estimated Value = Annual Earnings × Industry Multiple

A business with $200,000 in annual SDE at a 3x multiple is estimated at $600,000.

Assumptions

  • Uses the earnings multiple (SDE or EBITDA multiple) method, one of several common valuation approaches.
  • Industry multiples vary significantly — established, larger, or higher-growth businesses often command higher multiples than small owner-operated businesses.
  • Does not account for the value of separate assets (real estate, equipment) or outstanding liabilities.

Frequently Asked Questions

Seller's Discretionary Earnings is a common small-business profitability measure: net profit plus the owner's salary, benefits, and one-time or personal expenses run through the business — it reflects the total financial benefit to a single owner-operator.

Last updated January 15, 2026. Results are estimates for informational purposes only — read our disclaimer.