Business Valuation Calculator: Estimate Your Company's Worth in 2026

Estimate your business value using SDE or EBITDA multiples. Get low, mid, and high valuation ranges based on industry standards.

Mathematical Audit

How Business Valuation Is Calculated

Small businesses are typically valued using a multiple of their discretionary earnings.

SDE = Net Income + Owner Salary + Add-Backs + Depreciation + Interest
EBITDA = Net Income + Depreciation + Interest
Business Value = Earnings × Industry Multiple

SDE is used for owner-operated businesses under $1M revenue. EBITDA is used for larger businesses with professional management. Multiples vary by industry, size, and growth rate.

Operational Guide

How to Use the Business Valuation Calculator

1

Choose your valuation method

Select SDE for owner-operated businesses or EBITDA for businesses with a management team.

2

Enter your financial data

Input net income, owner salary, add-backs (one-time or personal expenses), depreciation, and interest.

3

Set industry multiples

Enter the low and high multiples typical for your industry. Most small businesses sell at 2–4× SDE.

4

Review the valuation range

The calculator shows a low, mid, and high estimate based on your earnings and multiples.

Real-World Scenario Example

"An e-commerce business with $120K net income, $80K owner salary, $15K in add-backs, $5K depreciation, $3K interest, using SDE method at 2.5–3.5× multiple."

Inputs

netIncome:120000
ownerSalary:80000
addBacks:15000
valuationMethod:sde

Result

SDE of $223,000. Valuation range: $557,500 (low) to $780,500 (high), midpoint $669,000.

Important Disclaimer

This calculator provides rough estimates for planning purposes only. Actual business value depends on many factors including assets, market conditions, and buyer negotiations. Consult a certified business appraiser for formal valuations.

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E-E-A-T Genuineness

Sources & References

Sofer Advisors — EBITDA Multiple for Business Valuation by Industry

https://soferadvisors.com/insights/blog/ebitda-multiple-for-business-valuation-by-industry/

Peak Business Valuation — Valuation Multiples for a Small Business

https://peakbusinessvaluation.com/valuation-multiples-for-a-small-business/