Quick Business Value Calculator

Have you ever wondered what your business might be worth?

If you’re like most business owners we talk to, you are incredibly curious about what your business might be worth. That’s why we built this incredibly simple 2-minute tool to provide you with a quick, ballpark estimate of your business’s value based on just a few key financial numbers. Whether you’re thinking about retirement, selling to employees, or simply planning ahead, this calculator can help you understand your business’s potential value and begin exploring your exit options. Think of this as a quick estimate, not a formal valuation.

How it works

Once you get past all the fancy formulas, most small and mid-size businesses are sold for somewhere in the range of 2-5x pre-tax earnings. What can make this tricky to calculate is how different owners choose to show, or not show, their salary under EBITDA. That’s why we use a measurement called Seller’s Discretionary Earnings (SDE), which is similar to EBITDA but includes earnings plus the owner’s salary. The goal is to answer the question, “How much money does this business generate for someone who buys the business and runs it themselves?”

To calculate an estimate for your own business, all you need to know is your average annual profit plus the owner’s salary. Then, based on your industry, our calculator applies some typical multiples to give you a starting point for an estimated value. If you also have any excess assets that aren’t necessary for daily operations (i.e., don’t affect earning potential), add those in as well.

Please note: This tool is not a substitute for a professional valuation, and the specific numerical weights applied to the qualitative risk factors are arbitrary and designed for illustrative estimates only. To simulate realistic high and low market scenarios, we apply a +/- 15% buffer to your final adjusted valuation. Every business is unique, and factors such as industry, growth rate, recurring revenue, assets, debt, etc. can significantly affect the final sale price. Before making any decisions about selling, financing, succession, or ownership transition, you should consult qualified business valuation professionals and legal, tax, and financial advisors.

1. Financial Baseline (Required)

Industry Select the category that best matches your primary business operations.

Earnings (SDE) $ Seller's Discretionary Earnings (SDE) is the true, total cash flow a business generates for a single owner-operator, calculated by taking net income and adding back the owner's salary, personal perks, and one-time expenses.

Hard Asset Value $ (Optional) The liquidation value of physical equipment, inventory, and real estate used in normal operations. Default is $0.

Excess Assets $ (Optional) A specific subsection of assets not necessary for daily operations (e.g., surplus cash, non-operating real estate). These are added directly to your final value.

2. Advanced Risk Factors (Optional)

Skip this section for a standard baseline valuation. If you want a more rigorous estimate, adjust the 8 factors below. Businesses with high risk (weak) are discounted, while highly systemized businesses (strong) command a premium.

Consumer Concentration How much of your revenue is tied to your top 3-5 customers? If losing a single client would devastate your profit, buyers will heavily discount your multiple to account for that risk.

Key Person Dependency Can the business operate smoothly for 30 days if you (or your top employee) step away? Businesses that run on documented systems and management teams sell for a premium over owner-dependent jobs.

Revenue Predictability How reliable is your future income? Annual contracts and subscriptions command a much higher valuation than project-based, unpredictable, or seasonal sales.

Growth Outlook Is your revenue trending up, flat, or declining over the last three years? Buyers pay a premium for a proven trajectory of growth, not just historical performance.

Margin Expansion Are your profit margins improving as you grow, or are operating costs eating into your bottom line? A business that becomes more profitable as it scales is highly attractive to acquirers.

Financial Cleanliness Are your books professionally managed (accrual basis, clean tax returns, clear separation of personal expenses)? Sloppy financials kill deals during due diligence or lead to massive price reductions.

Vendor Concentration Are you heavily reliant on a single supplier for your core inventory or software? If one vendor changing their pricing or cutting you off could cripple your business, it's a major red flag for buyers.

Competitive Positioning Do you have a "moat" like intellectual property, exclusive geographic rights, or a deeply entrenched brand? The harder it is for a new competitor to steal your market share, the higher your multiple.

Please select an Industry and enter your Earnings (SDE).

Estimated Market Value

Industry Median Sale Price: $0
Adjusted Multiple: 0.00x

Low Range (-15% Before Excess Assets)

Medium Valuation

High Range (+15% Before Excess Assets)

Comparing to Asset Value...

Surprised by your number? Let's dig deeper.

This calculator is just the starting point. Here are some experts who can help you uncover hidden value, improve your multiple, and map out a realistic exit strategy.

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