Free small business calculator
Business Valuation Calculator — Estimate Your Business Worth
Estimate your small business value using revenue multiples and profit multiples. Free business valuation calculator with industry benchmarks and methodology.
Enter the minimum numbers needed to get a result.
Updated live as you type.
Planning estimate only. It does not include taxes, overhead allocation, depreciation, discounts, or other business-specific adjustments.
Business valuation is the process of determining the economic value of a business, commonly estimated using revenue multiples or earnings multiples based on industry benchmarks.
Formula and example
Revenue Value = Annual Revenue × Revenue Multiple; Profit Value = Annual Profit × Profit Multiple; Blended = (Revenue Value + Profit Value) ÷ 2
For $500K revenue with a 1.0x multiple and $120K profit with a 2.5x multiple: Revenue Value = $500K, Profit Value = $300K, Blended Estimate = $400K.
Methodology & assumptions
Last updated: 2026-06-13Calculation method
Uses two common small business valuation methods: revenue multiple (industry standard multiples range from 0.5x-3.0x depending on sector) and SDE/profit multiple (typically 2.0x-5.0x). The blended estimate provides a reasonable range. Industry multiples vary significantly by sector, growth rate, and market conditions. Data sources include BizBuySell, Pepperdine Private Capital Markets Report, and industry M&A databases.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
This is a rough estimate, not a professional business appraisal. Does not account for growth rate, market position, intellectual property, customer concentration, or goodwill. Always consult a qualified business appraiser or M&A advisor for an accurate valuation.
Input definitions
- Annual revenue: Total annual revenue for the most recent fiscal year.
- Annual net profit (SDE/EBITDA): Sellers Discretionary Earnings or EBITDA.
- Revenue multiple: Industry-specific multiple applied to revenue (typically 0.5-3.0 for small businesses).
- Profit/SDE multiple: Industry-specific multiple applied to profit (typically 2.0-5.0 for small businesses).
Frequently asked questions
How is a small business valued?+
Small businesses are commonly valued using a multiple of revenue or earnings (SDE/EBITDA). The multiple varies by industry — for example, restaurants typically sell for 2-3x SDE, while online businesses sell for 2-4x SDE.
What is a good revenue multiple for my industry?+
Revenue multiples vary widely: service businesses (0.5x-1.5x), manufacturing (0.5x-1.0x), retail (0.3x-0.8x), and SaaS (3x-10x+). Our default 1.0x revenue multiple is conservative for most main street businesses.
What is SDE (Seller's Discretionary Earnings)?+
SDE is the total financial benefit a sole owner receives from a business, including net profit + owner's salary + discretionary expenses. It's the most common metric for valuing main street businesses under $5M in revenue.
Is this calculator a formal business appraisal?+
No. This calculator provides a rough estimate for initial planning only. For actual buying, selling, or financing decisions, engage a certified business appraiser (CBA) or M&A advisor who can perform a thorough analysis.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Next: What to do after this
Pick one next action. These are sequenced by the most common workflow after this calculation.
Continue the workflow
Estimate margin, convert margin to markup, then check the sales volume needed to break even.
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