BusinessBrokerUS · 2026 Seller Tools
Business Valuation Calculator
Find out what your business is worth in under a minute. This free calculator estimates your value using real 2026 US industry multiples — no signup, no email, completely confidential.
Net profit plus owner salary, benefits, and one-off add-backs.
Estimated business value
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Most likely: —
- Earnings used
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- Industry multiple
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- Basis
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How this valuation is calculated
We multiply your SDE or EBITDA by a current market multiple range for your industry, then adjust slightly upward for larger, more transferable businesses. The output is an estimate range, not a formal appraisal — final price depends on clean financials, growth, owner-dependence, and buyer demand.
Sponsored. BusinessBrokerUS may earn a commission if you engage Earned Exits.
Quick answer: Most US small businesses sell for 2–4× SDE (seller’s discretionary earnings). Larger lower-middle-market companies sell for 4–8× EBITDA. Your exact multiple depends on industry, size, growth, and how dependent the business is on you as the owner.
How much is my business worth?
A business is worth what a buyer will pay for its future earnings. In practice, that price is set by a simple formula used across almost every US business sale: annual earnings × an industry multiple. A business earning $400,000 a year in a sector that trades at 3× is worth roughly $1.2 million before adjustments.
The two variables that move your number are your earnings figure (SDE for smaller businesses, EBITDA for larger ones) and the multiple buyers currently pay in your industry. Everything else — growth, recurring revenue, owner-dependence, customer concentration — pushes that multiple up or down within a range.
How to value a business: 4 methods
1. Multiple of earnings (most common)
The market approach most brokers use for main-street and lower-middle-market businesses. You multiply SDE or EBITDA by a market multiple drawn from recent comparable sales. It works because it prices the business on what it actually earns for an owner, and it reflects live buyer demand. This is the method the calculator above uses.
2. Comparable sales (market data)
Values your business against what similar businesses recently sold for, using databases like BizBuySell, DealStats, and IBBA MarketPulse. It’s the most defensible method when good comparable data exists, and it’s how a broker sharpens a rough multiple into a listing price.
3. Asset-based valuation
Totals the value of assets minus liabilities. It suits asset-heavy businesses (manufacturing, equipment rental) or a business being wound down, but it usually undervalues a profitable operating business because it ignores goodwill and earning power.
4. Discounted cash flow (DCF)
Projects future cash flows and discounts them to present value. It’s precise in theory and common for larger or high-growth companies, but it’s highly sensitive to assumptions, so buyers of smaller businesses rarely rely on it alone.
SDE vs EBITDA: which one applies to you?
SDE (seller’s discretionary earnings) is your net profit with the owner’s salary, benefits, and one-time or personal expenses added back. It shows the total benefit one owner-operator takes from the business, and it’s standard for businesses under roughly $1 million in profit.
EBITDA keeps a manager’s market-rate salary as an expense and is used for larger businesses a buyer won’t run day-to-day. Because EBITDA assumes professional management, larger businesses valued this way command higher multiples. If you’re not sure which fits, use SDE below about $1M in earnings and EBITDA above it.
Business valuation multiples by industry (2026)
Typical US multiple ranges by sector. Treat these as starting points — a strong, low-risk business earns the top of its range, while owner-dependent or volatile businesses land at the bottom.
| Industry | SDE multiple | EBITDA multiple |
|---|---|---|
| General / Other | 2.0–3.5x | 3.5–5.5x |
| HVAC & Home Services | 2.5–4.5x | 4.0–6.5x |
| Construction & Contractors | 2.0–3.5x | 3.5–5.5x |
| Manufacturing | 3.0–4.5x | 4.5–7.0x |
| Distribution & Wholesale | 2.5–4.0x | 4.0–6.0x |
| Professional Services | 2.5–4.0x | 4.0–6.0x |
| Healthcare Services | 3.0–5.0x | 4.5–7.5x |
| Software / SaaS | 3.0–5.5x | 5.0–9.0x |
| E-commerce | 2.5–4.0x | 3.5–5.5x |
| Restaurants & Food Service | 1.5–2.5x | 3.0–4.5x |
| Retail | 2.0–3.0x | 3.0–4.5x |
| Auto Repair & Services | 2.0–3.0x | 3.0–4.5x |
| Transportation & Logistics | 2.5–4.0x | 3.5–5.5x |
| Landscaping & Facilities | 2.0–3.5x | 3.5–5.0x |
| Salon, Spa & Personal Care | 1.5–2.5x | 2.5–4.0x |
Worked examples
HVAC company (SDE basis)
Industry range: 2.5–4.5×
Applied to earnings …
Manufacturer (EBITDA basis)
Industry range: 4.5–7.0×
+ size premium for scale …
What affects your business valuation
Two businesses with identical profit can sell for very different prices. These factors decide where in the range you land:
- Earnings trend — consistent growth earns a premium; declining or erratic profit drags the multiple down.
- Owner-dependence — the single biggest value killer. A business that can’t run without you is risky to a buyer.
- Recurring revenue — contracts, subscriptions, and repeat customers raise the multiple.
- Customer concentration — one client at 40% of revenue is a discount; a broad base is a premium.
- Clean financials — documented, verifiable books survive due diligence and protect your price.
- Systems and team — documented processes and a capable management layer make the business transferable.
How to increase your business value before selling
Most owners can lift their multiple with 12–24 months of preparation:
- Grow and document clean profit for two to three years before listing.
- Reduce owner-dependence by building a management layer and documenting operations.
- Lock in recurring revenue and multi-year contracts.
- Diversify your customer base so no single client is critical.
- Tidy up financial and legal housekeeping so due diligence is fast and clean.
When to get a professional valuation
This calculator is built for speed and planning — it uses industry averages and can’t see your specific financials, contracts, or local market. Before you actually list, a broker prices your business against recent comparable sales and prepares the financial story buyers scrutinize. For businesses above roughly $500K in value, that usually pays for itself by preventing under-pricing and reducing deals that collapse in due diligence.
Sponsored. BusinessBrokerUS may earn a commission if you engage Earned Exits.
Business valuation calculator FAQ
How much is my business worth?
As a rule of thumb, most US small businesses sell for 2–4× SDE (seller’s discretionary earnings), while larger lower-middle-market companies sell for 4–8× EBITDA. The exact multiple depends on your industry, size, growth, and how dependent the business is on you. Enter your earnings above to see your estimated range.
How do you calculate the value of a business?
The most common method is a multiple of earnings: take your annual SDE or EBITDA and multiply it by a market multiple for your industry. For example, a business earning $400,000 in SDE in a sector that trades at 3× would be worth roughly $1.2 million. Asset-based and discounted-cash-flow methods are used in specific situations, but earnings multiples drive most main-street and lower-middle-market sales.
What is a business valuation multiple?
A valuation multiple is the number you multiply earnings by to estimate sale price. It reflects what buyers in your industry have recently paid relative to profit. Higher multiples signal stronger demand, recurring revenue, and lower risk; lower multiples reflect owner-dependence, thin margins, or volatile earnings.
What is SDE (seller’s discretionary earnings)?
SDE is net profit with the owner’s salary, benefits, and one-time or personal expenses added back. It shows the total financial benefit a single owner-operator takes from the business, and it’s the standard earnings figure for valuing businesses under roughly $1 million in profit.
What’s the difference between SDE and EBITDA?
SDE adds back one owner’s full compensation and is used for smaller, owner-operated businesses. EBITDA (earnings before interest, taxes, depreciation, and amortization) assumes a hired manager’s salary stays as an expense and is used for larger companies where the buyer won’t run day-to-day operations. Larger businesses valued on EBITDA typically command higher multiples.
How many times profit does a business sell for?
Main-street businesses commonly sell for 2–4× SDE. Lower-middle-market companies (roughly $1M–$25M in value) sell for 4–8× EBITDA, with software, healthcare, and high-growth businesses reaching the top of that range. Revenue multiples are only reliable in a few sectors like SaaS.
What factors increase a business’s value?
Consistent and growing profits, recurring or contracted revenue, a diversified customer base, documented systems, a capable team that runs without the owner, clean financial records, and defensible market position all push multiples higher. Heavy owner-dependence and customer concentration are the biggest value killers.
How accurate is an online business valuation?
An online calculator gives a fast, useful ballpark based on industry averages — good for planning and setting expectations. It cannot see your specific financials, contracts, growth trend, or local market, so a real sale price can land well above or below the estimate. Before listing, get a broker or valuation professional to refine it.
Do I need a professional valuation to sell my business?
Not always, but it helps. A broker’s valuation prices your business against real, recent comparable sales and prepares the financial story buyers scrutinize. For businesses above roughly $500K in value, a professional valuation usually pays for itself by preventing under-pricing and reducing deals that fall apart in due diligence.
How can I increase my business value before selling?
Grow and document profit for two to three clean years, reduce owner-dependence by building a management layer, lock in recurring revenue and multi-year contracts, diversify customers, and tidy up financials and legal housekeeping. Most owners can lift their multiple meaningfully with 12–24 months of preparation.
This business valuation calculator provides estimates for planning purposes only and is not a formal appraisal, or tax, legal, or financial advice. Figures use general US market ranges for 2026 and will differ from a professional valuation of your specific business. Consult a qualified business broker, appraiser, or CPA before making decisions.