Business Valuation Calculator: What Is My Business Worth?
Enter your sales, profit and the owner's pay. We add back what a new owner would not pay, then show a value range using common small-business multiples.
What we noticed
Year by year
How this calculator works
Most small businesses are priced on seller's discretionary earnings, or SDE. That is the total money one working owner gets from the business in a year. We work it out as your profit plus the owner's pay, interest, depreciation and any one-off or personal costs.
Then we multiply SDE by a range of multiples. Broker reports show many small businesses selling for about 2 to 3 times SDE, and BizBuySell reported an average of about 2.6 times cash flow for 2025. We also show a rough check from a sales multiple, and your net assets.
No formula gives an exact price. Buyers weigh your customers, how much depends on you, your growth and the market. This is a starting range for education, not a valuation or financial advice.
Reported small business benchmarks
| Average sale price to cash flow (SDE), 2025 | About 2.6x (BizBuySell) |
|---|---|
| Average sale price to sales, 2025 | About 0.7x (BizBuySell) |
| Common range for small businesses | About 2x to 3x SDE (broker surveys) |
| Larger businesses | Often priced on EBITDA with different multiples |
Sources: BizBuySell Insight Report (small business sale data), IBBA and M&A Source Market Pulse report, IRS: Valuation of assets (general guidance)
Frequently asked questions
How do I value my small business?
Work out your seller's discretionary earnings, then multiply by a multiple that fits your industry and size. Many small businesses sell for about 2 to 3 times SDE. Check it against your sales and your net assets.
What is SDE?
Seller's discretionary earnings is your profit plus the owner's pay, interest, depreciation and one-off or personal costs. It shows what a single working owner earns from the business.
What is the difference between SDE and EBITDA?
SDE adds back the owner's full pay. EBITDA assumes you pay a manager to run the business, so it is SDE less that manager pay. Larger businesses usually use EBITDA.
What multiple should I use?
It depends on your industry, size, growth and how much relies on you. Brokers report an average of about 2.6 times cash flow for small businesses. Try a low and a high multiple to see the range.
Will a buyer pay this price?
Not necessarily. The calculator gives a starting range. Buyers also look at your customers, contracts, records and risks, and a business broker or accountant can give you a proper valuation.