Business Valuation Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Your business could be worth about $800,000.
Three methods give $600,000 to $1,282,764.
Middle valuation
$800,000
Small businesses usually sell for 2 to 4 times owner’s profit (SDE); larger ones on an EBITDA multiple of 4 to 8. Buyers pay more for growth, recurring revenue and a business that runs without the owner.
Show the working
200,000 × 3 = 600,000
1,000,000 × 0.8 = 800,000
5 years at 5% growth, discounted at 20%, plus a terminal value = 1,282,764
By earnings multiple
| Multiple | Value |
|---|---|
| 1.5× | 300,000 |
| 2× | 400,000 |
| 2.5× | 500,000 |
| 3× | 600,000 |
| 4× | 800,000 |
| 5× | 1,000,000 |
| 6× | 1,200,000 |
Questions people ask
How are small businesses valued?
Most sell on a multiple of seller’s discretionary earnings (SDE), usually 2 to 4 times. Larger companies use EBITDA multiples of 4 to 8 or more.
What raises the multiple?
Steady growth, recurring revenue, many customers rather than a few, documented processes and a business that runs without the owner.
Is this what I’ll get?
It’s a starting point. A broker or valuer will look at your accounts, assets, debts and the market for similar sales.
Updated 22 Oct 2026Source: National averages and published fee tables, checked October 2026Checked by AotobRule-of-thumb methods, not a formal valuation.Report an issue