A business valuation calculator estimates what a small business is worth using established methods. Whether you are planning to sell, seeking investors, or simply benchmarking, understanding your business value helps you negotiate from a position of knowledge. This tool uses three approaches — SDE multiple, revenue multiple, and discounted cash flow — so you can compare results side by side.
Business Financial Inputs
SDE Add-Backs
Industry & Multiples
DCF Assumptions
SDE Calculation Breakdown
| Net Profit | — |
| + Owner Salary | — |
| + Owner Benefits | — |
| + Non-Recurring Expenses | — |
| + Depreciation / Amortization | — |
| = Seller's Discretionary Earnings | — |
Valuation Comparison — Three Methods
| Method | Low Estimate | Mid Estimate | High Estimate |
|---|---|---|---|
| SDE Multiple | — | — | — |
| Revenue Multiple | — | — | — |
| Discounted Cash Flow | — | ||
Recommended Asking Price Range
—
Based on the average of all three methods. Actual value depends on buyer demand, market conditions, and due diligence findings.
DCF Year-by-Year Schedule
| Year | Cash Flow | Discount Factor | Present Value |
|---|
Industry SDE Multiple Reference
| Industry | SDE Multiple | Revenue Multiple |
|---|---|---|
| Restaurant | 1.5 - 2.5x | 0.3 - 0.7x |
| Retail | 1.5 - 3.0x | 0.3 - 1.0x |
| Professional Services | 2.0 - 4.0x | 0.5 - 1.5x |
| Manufacturing | 2.5 - 4.5x | 0.5 - 1.5x |
| Tech / SaaS | 3.0 - 6.0x | 1.0 - 2.0x |
| Healthcare | 2.5 - 5.0x | 0.5 - 1.5x |
| Construction | 1.5 - 3.0x | 0.3 - 1.0x |
| E-Commerce | 2.0 - 4.0x | 0.5 - 1.5x |
How to Use the Business Valuation Calculator
Knowing how much your business is worth is critical whether you are planning an exit, negotiating with investors, or setting a buy-sell agreement with partners. This business valuation calculator uses three widely accepted methods so you can triangulate a realistic value range rather than relying on a single number.
Step 1: Enter Your Financial Data
Start with your annual revenue and net profit (after all expenses, before owner compensation adjustments). Then fill in the SDE add-backs: your owner salary, personal benefits paid through the business, any one-time or non-recurring expenses (like a lawsuit settlement or a one-time equipment purchase), and depreciation or amortization charges. These add-backs reconstruct the total cash benefit available to a new owner.
Step 2: Select Your Industry
Choose the industry that best matches your business. The calculator uses typical SDE and revenue multiples for that industry as defaults. If you have data from a broker or comparable transactions, you can override with custom multiples. Higher multiples reflect recurring revenue, strong growth, low customer concentration, and defensible market positions.
Step 3: Set DCF Assumptions
For the discounted cash flow method, set your expected annual growth rate, your discount rate (WACC — typically 15-25% for small businesses to reflect risk), and the number of projection years. The DCF method is most useful for businesses with predictable, growing cash flows. A higher discount rate produces a more conservative valuation.
Step 4: Compare the Three Methods
After clicking Calculate, you will see a side-by-side comparison of all three methods. The SDE multiple method is the standard for small businesses — it multiplies your adjusted earnings by an industry-typical factor. The revenue multiple method is a quick sanity check based on top-line sales. The DCF method values the business based on the present value of its future cash flows. The recommended asking price range averages across all three to give you a balanced starting point.
Understanding Your Results
No single method is "correct" — each has strengths and weaknesses. SDE multiples are the most commonly used for businesses under $5 million in revenue. Revenue multiples are faster but ignore profitability. DCF rewards predictable growth but is sensitive to assumptions. A professional business appraiser can account for intangible factors like brand value, customer relationships, and market timing that no calculator can capture. Use these estimates as a starting point for conversations with brokers, buyers, or advisors.
For a detailed walkthrough, see our guide: How to Value Your Startup for a Seed Round in 2026.
FAQ
Is this business valuation calculator free?
Yes, this tool is completely free with no signup required. All calculations run locally in your browser — no financial data is ever sent to a server or stored anywhere. Use it as many times as you need.
Is my financial data safe and private?
Absolutely. Everything runs in your browser using JavaScript. No data leaves your device — there is no server-side processing, no cookies, and no tracking of your financial inputs.
What is Seller's Discretionary Earnings (SDE)?
SDE represents the total financial benefit a single owner-operator receives from a business. It equals net profit plus the owner's salary, benefits, non-recurring expenses, and depreciation/amortization. SDE is the most common basis for valuing small businesses under $5 million in revenue.
How accurate is a business valuation calculator?
Online calculators provide rough estimates useful for initial planning. Actual business value depends on many factors not captured here — customer concentration, competitive moats, market conditions, and buyer demand. For a transaction, always get a professional appraisal from a certified business valuator.
What SDE multiple should I use for my industry?
SDE multiples vary by industry and business size. Restaurants typically sell at 1.5-2.5x, retail at 1.5-3.0x, professional services at 2.0-4.0x, manufacturing at 2.5-4.5x, and tech/SaaS at 3.0-6.0x. Higher multiples reflect stronger growth, recurring revenue, and lower risk.
What is the difference between SDE and revenue multiples?
SDE multiples value a business based on its adjusted earnings (profitability), making them more accurate for most small businesses. Revenue multiples value based on top-line sales regardless of profitability — they are quicker to calculate but less precise, and are more common for high-growth companies.
How does the DCF method work for business valuation?
Discounted Cash Flow (DCF) projects future annual cash flows, then discounts them back to present value using a discount rate (typically WACC). The sum of discounted cash flows represents what the business is worth today. DCF rewards businesses with growing, predictable cash flows.