Business Valuation Calculator (2026)
What is a small business worth? Enter the annual earnings and pick the type, and this tool applies published transaction multiples to produce an orientation range. It is deliberately a range, not a single number, because real businesses with identical earnings routinely sell for very different prices. This is not a valuation. Nothing you enter is stored.
Last updated August 30, 2026
How the range is built
Most small businesses are priced on a multiple of earnings. Owner-operated businesses are usually valued on seller's discretionary earnings (SDE), which is profit plus the owner's salary and perks, and typically change hands between two and three and a half times SDE. Larger businesses, roughly those earning more than a million dollars, are usually valued on EBITDA and trade at higher multiples. The multiples here come from publicly reported closed-transaction data. BizBuySell, for example, reported an average closed multiple near 2.6 times SDE in 2025.
What actually moves the price
Two businesses with identical earnings routinely sell for very different multiples. What separates them is not in this calculator: customer concentration, how dependent the business is on the owner, how much revenue recurs, margins, and growth. A business where one client is half of sales, or where nothing happens without the founder, sells for less. A business with diversified customers, recurring revenue and a team that runs it without the owner sells for more. I have written about concentration risk and owner dependence elsewhere on this site, and it matters more than the multiple.
This is orientation, not an appraisal
Treat the output as a starting range to frame a conversation, not a number to rely on. A real valuation comes from a professional who examines the financials, the customer base, the contracts and the market. Two appraisers may still disagree. Use this to get oriented, then get proper advice before you buy, sell, or plan around a figure.
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Frequently asked questions
What is SDE, and how is it different from EBITDA?
SDE, seller's discretionary earnings, is profit plus the owner's salary and personal perks, used for owner-operated businesses. EBITDA is earnings before interest, taxes, depreciation and amortisation, used for larger businesses run by management. Small businesses are usually priced on SDE, larger ones on EBITDA.
Why is the answer a range and not a single number?
Because real sales are a range. Two businesses with the same earnings can sell for very different prices depending on customer concentration, owner dependence, recurring revenue, margins and growth. A single number would imply a precision that does not exist.
Where do the multiples come from?
From publicly reported closed-transaction summaries, primarily the BizBuySell Insight Report for owner-operated businesses and published lower-middle-market ranges for larger, EBITDA-priced businesses. They are broad market averages, not your specific business.
Is this a valuation I can rely on?
No. It is an orientation range. A real valuation comes from a professional who examines your financials, customers, contracts and market. Use this to get oriented, then get proper advice.
Is my number stored?
No. The calculation runs entirely in your browser. Nothing you enter is saved or sent anywhere.