Business valuation calculator

Estimate what a small business is worth from a few numbers on its tax return. The calculator works out seller's discretionary earnings and applies the median multiple from closed sales in the same industry and size range. It's free, needs no sign-up, and nothing you enter leaves your browser.

IndustryAnnual revenuePre-tax profitNet income before income taxes, from the P&L or tax return.Owner's salary and benefitsOne working owner: wages, payroll taxes, health insurance, retirement.Depreciation, amortization, and interestPersonal and one-time expensesOwner's car, family on payroll, a lawsuit, a move. Only what you can document.Salary to hire a manager in your placeUsed to estimate EBITDA, which sets the size band. Blank means 0.

Enter pre-tax profit and owner's pay to see an estimate.

How the calculator works

1. It adds up seller's discretionary earnings (SDE).SDE = pre-tax profit + owner's salary and benefits + depreciation, amortization, and interest + personal and one-time expenses. It's the cash a single owner-operator gets from the business, and it's the figure buyers and brokers price small businesses on. How to recast the statements explains which add-backs hold up.

2. It places the business in a size band. EBITDA is SDE minus what it would cost to hire a manager. The same industry sells at very different multiples at $150K of EBITDA than at $2M, so the band matters as much as the industry.

3. It applies the industry multiple for that band.The estimate is earnings × the median multiple. The range runs from the low to the high multiple seen in comparable sales. Below $1M of EBITDA the calculator uses SDE multiples; above that it uses EBITDA multiples, as buyers do.

SDE multiples by business size, all industries

Business size (EBITDA)	Low	Median SDE ×	High
Under $250K EBITDA	1.95×	2.58×	3.28×
$250K – $1M EBITDA	2.07×	4.22×	6.03×
$1M – $2.5M EBITDA	2.18×	5.80×	8.69×
$2.5M – $10M EBITDA	2.90×	6.70×	10.50×
Over $10M EBITDA	3.66×	9.17×	12.10×

Business size (EBITDA)

Low

Median SDE ×

High

Under $250K EBITDA

1.95×

2.58×

3.28×

$250K – $1M EBITDA

2.07×

4.22×

6.03×

$1M – $2.5M EBITDA

2.18×

5.80×

8.69×

$2.5M – $10M EBITDA

2.90×

6.70×

10.50×

Over $10M EBITDA

3.66×

9.17×

12.10×

ExitSight Deal Multiples Database, all-industry curve. Updated 2026-09-02. See SDE multiples by industry for all 118 industries.

What a calculator can't tell you

Two businesses with the same SDE in the same industry can sell for very different prices. Buyers pay more for steady earnings over several years, recurring revenue, a business that runs without the owner, and a broad customer base. They pay less when one customer is a third of sales or the owner holds every key relationship. The seven value drivers covers these factors and how much each one moves the price.

A multiple of one year's earnings is also only one method. A valuation that has to hold up with a buyer, a lender, or a partner checks it against capitalized earnings, discounted cash flow, and the asset value, and reconciles the results.

Need a value you can defend?

ExitSight recasts up to five years of statements, runs seven valuation methods from the same numbers, reconciles them, and writes a typeset report you can hand to a buyer or a bank.See a sample report orstart for $149/mo, with a 30-day money-back guarantee.

Frequently asked questions

How accurate is a business valuation calculator?

It gives a reasonable starting range, not a value you can defend. It applies one method (an earnings multiple) to one year of numbers you enter. A real valuation recasts several years of statements, applies more than one method, and adjusts for the risks particular to the business, such as customer concentration and how much depends on the owner.

What is seller's discretionary earnings (SDE)?

SDE is the total cash benefit one full-time owner takes out of the business: pre-tax profit plus the owner's salary and benefits, depreciation, amortization, interest, and any personal or one-time expenses run through the company. It is the standard earnings figure for valuing owner-operated businesses.

What multiple of SDE do small businesses sell for?

Across all industries, businesses with under $250K of EBITDA sell for a median of about 2.6× SDE, with most between 1.9× and 3.3×. Businesses with $250K to $1M of EBITDA sell for a median of about 4.2× SDE. The industry and size both move the multiple.

Why does the multiple go up as the business gets bigger?

Larger businesses attract a different buyer pool. Individual buyers purchase most businesses under $1M, while private equity and strategic buyers compete for larger ones. Larger companies also tend to be less dependent on one owner and to have steadier earnings, both of which lower the risk a buyer prices in.

Should I use SDE or EBITDA?

Use SDE for owner-operated businesses, where the buyer will run the company and take the owner’s pay. Use EBITDA once the business is large enough that a buyer would hire a manager, roughly above $1M of earnings. The calculator switches to EBITDA multiples above that size, as buyers do.

Is this calculator free?

Yes, with no sign-up and no email required. Nothing you type leaves your browser. ExitSight itself is a paid tool ($149/mo) that runs seven valuation methods and produces a full written report.