STARTUP · VALUATION
Business Valuation Calculator
Estimate business worth using revenue, SDE, and EBITDA multiples with a blended valuation range.
Result
Method comparison (mid estimate)
Each method's mid-point valuation side by side.
Per-method valuation range
Low to high band per method, marker at mid.
What multiple should you enter? Sourced 2025 medians
The multiple is the one input most owners don't know. These are real closed-transaction figures, not theory. Anchor on them, then adjust for growth, recurring revenue, and customer concentration.
| Business type | Typical SDE multiple | Basis |
|---|---|---|
| All small businesses (avg) | 2.61x | BizBuySell 2025 closed deals |
| Main Street (IBBA range) | 2.0–2.8x | IBBA Market Pulse 2025 |
| Service / consulting | 2.0–3.0x | sector range around the avg |
| Retail | ~2.5x | sector range around the avg |
| Restaurants / food | 1.8–2.0x | thin margins, location risk |
| Online / SaaS / tech | 3.0–5.0x | scalability, transferability |
Above ~$2M EBITDA the market prices on EBITDA multiples (3–6x), not SDE. Full sourced detail with named citations is on the business valuation statistics page, and the how to value a small business guide works the method end to end.
What this business valuation calculator does
Owners reach for a company valuation calculator when they're weighing a sale, a partner buy-in, or raising money, and they want a number before paying for a formal appraisal. This free online tool gives you that number. Enter a financial figure and a market multiple for one or more methods, and it returns a per-method value plus a blended low, mid, and high range — the spread an actual buyer would negotiate inside.
Which valuation method fits your business
The calculator runs three multiple-based methods. It does not run a discounted-cash-flow (DCF) model — that needs cash-flow projections and a discount rate, which is out of scope for a fast estimate. Pick the method your likely buyer pool actually uses.
- Revenue multiple — annual revenue × a revenue multiple. Useful for high-growth or pre-profit businesses where earnings are noisy. SaaS and online businesses are most often valued this way.
- SDE multiple — Seller's Discretionary Earnings × an SDE multiple. The standard for owner-operated small businesses under roughly $5M revenue. SDE adds the owner's salary and discretionary expenses back to net profit.
- EBITDA multiple — EBITDA × an EBITDA multiple. The mid-market standard for larger businesses where a buyer will hire a manager rather than run it themselves.
Leave any method at zero to exclude it. The blended estimate averages only the methods you fill in, so a single-method run is valid.
How to read your result
The headline number is the blended mid — a reasonable midpoint across the methods you entered. The low and high estimates bracket the negotiating range; each method also shows its own low / mid / high band so you can see where the methods disagree. A wide spread usually means one input is doing the work, so check whether your revenue multiple and SDE multiple are telling the same story. If SDE exceeds revenue, or EBITDA exceeds SDE, the tool flags it — those inversions are unusual and point to a data-entry slip.
Common questions about valuing your business
How do I value my business?
Start with the earnings figure your buyer cares about — SDE for an owner-operated small business, EBITDA for a larger one — then multiply it by a market multiple for your sector. Enter revenue, SDE, and EBITDA above with their multiples and the calculator returns a blended valuation range. For the full step-by-step method, see the how to value a small business guide, and for the four valuation approaches side by side, the business valuation methods breakdown.
What multiple is my business worth?
It depends on sector, size, and quality of earnings. BizBuySell's 2025 closed-deal data puts the average small-business sale near 2.61× SDE, with service businesses around 2.0–3.0×, retail near 2.5×, restaurants 1.8–2.0×, and online or SaaS businesses 3.0–5.0×. Above roughly $2M EBITDA the market prices on EBITDA multiples (3–6×) instead of SDE. The sourced table above lists the median for each type.
Is this business valuation tool free?
Yes. It runs in your browser with no signup, no payment, and no account. Your figures stay on your device unless you copy a share URL.
Can this calculator value a company that isn't a small business?
For mid-market companies, use the EBITDA-multiple input — that is what acquirers and private-equity buyers price on. The tool gives a planning estimate; transactions, tax, and estate work still need a credentialed appraiser (CVA, ABV, ASA).
How to use it
- Enter annual revenue with a revenue multiple, SDE with an SDE multiple, and EBITDA with an EBITDA multiple. Revenue multiples tend to matter more for growth-heavy businesses, SDE is common for owner-operated businesses under roughly $5 million in revenue, and EBITDA is the cleaner standard for larger firms.
- Read the low, mid, and high value for each method plus the blended range. Large gaps between methods usually mean buyers will focus on quality of earnings, owner dependence, or inconsistent margin performance instead of accepting the most generous headline.
- Treat the blended mid-range as a negotiation anchor, not a guaranteed sale price. If revenue-based value is far above SDE or EBITDA value, the market is likely to discount the story unless recurring revenue, margins, and risk profile genuinely support the higher multiple.
- Use the range to prepare for a sale, partner buyout, or capital raise. If you want a better multiple, focus on recurring revenue mix, customer concentration, clean add-backs, and margin consistency before arguing the price itself.
- Re-run after meaningful growth, margin expansion, or customer-risk changes, and at least quarterly during sale prep. Track value using both improved financials and stable multiples so you can separate operational progress from market mood.
Questions people usually ask
What are the three valuation methods?
Revenue Multiple values your business as a multiple of annual revenue. SDE Multiple uses owner earnings (common for sub-$5M businesses). EBITDA Multiple is the mid-market standard for larger businesses.
How do I choose the right multiple?
Anchor on real closed-transaction data, not theory. BizBuySell's 2025 figures put the average small-business sale at 2.61× SDE, and the IBBA Market Pulse 2025 survey puts Main Street deals in a 2.0–2.8× SDE range. By sector: service ~2.0–3.0× SDE, retail ~2.5×, restaurants 1.8–2.0×, and online/SaaS/tech 3.0–5.0×. Above roughly $2M EBITDA the market prices on EBITDA multiples (3–6×) rather than SDE. Start from the sourced median for your type, shown in the table below the calculator, then adjust up for recurring revenue and growth, and down for owner or customer concentration.
What is SDE (Seller's Discretionary Earnings)?
SDE = net income + owner salary + owner benefits + interest + depreciation + amortization + one-time non-recurring expenses. It represents total economic benefit to a working owner.
Why does the blended estimate average all methods?
Using multiple methods reduces the risk of one metric distorting the picture. The blended range gives a more robust estimate than any single method alone.
Is this tool free and private to use?
Yes. AI Biz Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.
Related Resources
Learn the decision before you act
Every link here is tied directly to Business Valuation Calculator. Use the explanation, formula, examples, and benchmarks to pressure-test the calculator output from first principles.
How To Use
5 STEPSHow to Use One-Person SaaS Valuation
How to use One-Person SAAS Valuation: estimate what your solo SaaS is worth using indie and micro-SaaS multiples — revenue, SDE, and profit methods with key.
ReadHow To Use
4 STEPSHow to Use Dilution Calculator
Model founder equity dilution across multiple funding rounds. See how each round's investment and valuation affects your ownership percentage over time.
ReadHow To Use
5 STEPSHow to Calculate Startup Runway: Step-by-Step
Learn how to calculate startup runway step by step: enter cash, burn rate, and revenue to get runway months, your zero-cash date, and break-even point.
ReadHow To Use
5 STEPSHow to Use Break-Even Units Calculator
How to use Break-Even Units calculator: quickly find out how many units your business needs to sell to cover all costs. This calculator is vital for pricing.
ReadFormula
3 VARIABLESBusiness Valuation Formula (Earnings x Multiple)
The business valuation formula multiplies normalized earnings (SDE or EBITDA) by an industry multiple. See how to set the multiple and bracket the value range.
ReadFormula
4 VARIABLESCustomer Lifetime Value (LTV) Formula
The customer lifetime value formula multiplies average purchase value, frequency, and lifespan. Learn to calculate LTV and pressure-test it against churn.
ReadRelated deep dive
All articles →Read further
Long-form context behind the calculator output.
- Pillar·11 min
How to Value a Business 2026: Methods, Multiples & Examples
Value a business with revenue, SDE, and EBITDA multiples plus real 2025-2026 benchmarks. Two worked examples land at $414,977 and $890,000 blended.
Read - Article·11 min
Valuation: Revenue vs SDE vs EBITDA for Solo Founders
Valuation across three methods on the same business: $500k revenue, $240k SDE, $225k EBITDA. The blended midpoint of $321,667 is defensible.
Read - Article·7 min
How to Value a Small Business: SDE vs EBITDA Multiples
How to value a small business: choose between SDE and EBITDA multiples, anchor to BizBuySell sale data, and adjust for growth, owner pay, and earn-outs.
Read
Continue With Related Tools
Calculate personal runway, months to ramen profitable, and months to fully profitable from savings, side income, MRR growth, and personal expenses.
Open →Calculate LTV, CAC, payback period, and break-even customers calibrated for bootstrapped scale. Designed for $5-50/month products with organic or near-zero CAC.
Open →Know exactly how many units you need to sell before a new product, offer, or campaign stops losing money.
Open →Know how many months you have — see when cash runs out under different revenue growth and burn scenarios.
Open →More in Bootstrapped Growth
See when cash runs out, what you need to break even, and how to grow without funding.
Decision Workflows
Step-by-step guides that use this tool.
Is My Business Idea Viable? — Run These 5 Numbers
5 steps · targets: "is my business idea viable"
Scaling From Freelance to Agency — The Numbers You Need
5 steps · targets: "scaling from freelance to agency"
Preparing for Fundraising — 5 Numbers Investors Will Ask
5 steps · targets: "preparing for fundraising"