How accurate is this business valuation calculator?

This calculator provides a ballpark estimate based on industry-standard SDE multiples. Actual valuations depend on many additional factors including growth trends, customer concentration, lease terms, and equipment condition. Use this as a starting point, not a definitive appraisal.

What affects my business valuation multiple?

Key factors include: years in business (longevity premium), number of employees, revenue trends, customer diversification, owner dependency, recurring vs one-time revenue, and industry conditions.

Free Business Valuation Calculator — What Is My Business Worth?

Your Business Details

Industry

Annual Revenue

Annual Profit / Net Income (after your salary)

Years in Business

Employees (optional)

Location (city, state)

Estimated Business Value

Conservative

—

—x SDE

Most Likely

—

—x SDE

Optimistic

—

—x SDE

📊 How we calculated this ▼

Note: This is a ballpark estimate. Final valuations depend on growth trends, customer concentration, lease terms, and other factors. Always work with a professional broker for a formal appraisal.

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Valuation FAQs

What is SDE (Seller's Discretionary Earnings)?

SDE stands for Seller's Discretionary Earnings — your net profit plus the owner's salary and any personal expenses run through the business. It represents the true economic benefit to a working owner. Most small businesses under $5M in revenue are valued as a multiple of SDE.

How accurate is this calculator?

This gives you a solid ballpark based on industry-standard multiples. Actual valuations depend on many factors: growth trends, customer concentration, lease terms, equipment condition, and how "owner-dependent" the business is. Use this as a starting point, not a definitive number.

What factors increase my valuation multiple?

Longevity (10+ years in business), strong team (10+ employees), recurring revenue, documented processes, multiple locations, and low customer concentration all push your multiple higher. Owner dependency and declining revenue pull it down.

Should I include my own salary in the profit number?

For this calculator, enter your net income after paying yourself. If you took no salary and the business cash-flowed $200k, enter $200k. If you took a $100k salary and net profit was $100k, your SDE is approximately $200k — you may want to add those back.

What's BuyABoomer's commission if I sell?

Listing is always free. We charge 3% at closing for our first 10 sellers (Founders 10 promo) and 8% flat after that — roughly half what traditional business brokers charge. No upfront fees, ever.