Business Valuation Calculator
Estimate what your company could be worth using revenue, EBITDA and SDE multiples, adjusted for your growth and risk profile. Enter your numbers to see an illustrative valuation range.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Estimated business value
Enter your annual revenue (and, if you have them, EBITDA or SDE) to estimate a valuation.
Quick Answer
How is a business valued?
Most businesses are valued using one or more of three approaches. The income approach values the business as a multiple of EBITDA — typically 3–8× for small businesses, higher for fast-growing companies. The market approach compares the business to recent sales of similar companies in the same industry. The revenue approach applies a revenue multiple (0.5–3×) and is common for SaaS and subscription businesses. For a profitable small business with $500,000 EBITDA in an industry with a 4× multiple, the estimated value is $2 million. Larger businesses with recurring revenue, low customer concentration, and strong management teams command higher multiples. This calculator blends the EBITDA and revenue methods using industry benchmarks from NACVA and Damodaran datasets to produce an estimated valuation range.
What is a business valuation calculator?
A business valuation calculator estimates the value of a company based on its financial performance and risk profile. Rather than relying on a single formula, this tool uses several standard market approaches at once and blends them into a single estimated valuation range. It is designed for founders, small business owners and investors who want a fast, credible starting point before speaking to a broker, accountant or appraiser.
The result is an illustrative estimate, not a guaranteed market value. Real transactions depend on negotiation, due diligence, deal structure, market timing and factors that no calculator can fully capture.
How does it work?
The calculator follows the same logic a business broker would use as a first pass:
- Estimate earnings. If you do not enter EBITDA, it is approximated from revenue minus expenses. SDE is estimated by adding your owner salary back to EBITDA.
- Apply industry multiples. Each industry has typical low, mid and high multiples for revenue, EBITDA and SDE. These build the base of the range.
- Blend the approaches. The revenue, EBITDA and SDE valuations are weighted together so no single method dominates.
- Adjust for growth and risk. Faster growth raises the estimate; risk factors such as high customer concentration or heavy owner dependency lower it.
- Convert to equity value. Cash is added and total debt is subtracted to move from enterprise value to the value of your ownership stake.
How is the result calculated?
The core formulas are straightforward:
- Revenue valuation = Annual revenue × industry revenue multiple
- EBITDA valuation = EBITDA × industry EBITDA multiple
- SDE valuation = SDE × industry SDE multiple
- Equity value = Blended enterprise value × growth factor × risk factor + cash − debt
Example
Suppose a SaaS business has $1,000,000 in annual revenue, $300,000 of EBITDA, a $120,000 owner salary, 20% growth, 80% recurring revenue and low customer concentration. The calculator estimates SDE at around $420,000, applies SaaS multiples to revenue, EBITDA and SDE, blends them, then nudges the result up for strong growth and recurring revenue. The output is a valuation range rather than a single figure — for example a low, mid and high estimate that you can use as a negotiating anchor.
Who should use it?
- Founders planning an exit or raise who need a quick sense of value.
- Buyers screening acquisition targets.
- Owners tracking how operational improvements affect value over time.
- Advisors and consultants preparing a first-cut estimate for clients.
Limitations
Multiples-based valuation is a simplification. It does not account for the quality of your revenue, the strength of contracts, intellectual property, tangible assets, working capital, tax structure or current buyer demand in your sector. Two businesses with identical financials can sell for very different amounts. Treat this estimate as a conversation starter and seek professional advice before making decisions.
Frequently asked questions
How is my business valuation estimated?
The calculator blends three common market approaches — a revenue multiple, an EBITDA multiple and an SDE multiple — using industry-specific ranges. It then adjusts for your growth rate and risk factors (recurring revenue, customer concentration, age and business model) and converts the enterprise value to an equity value by adding cash and subtracting debt.
What is the difference between EBITDA and SDE?
EBITDA is earnings before interest, taxes, depreciation and amortisation — a measure of operating profitability. SDE (Seller's Discretionary Earnings) starts from EBITDA and adds back the owner's salary and discretionary perks. Smaller, owner-operated businesses are usually valued on SDE, while larger businesses are valued on EBITDA.
Is this the same as a professional business appraisal?
No. This tool produces an illustrative estimate to help you understand the drivers of value. A formal valuation from a qualified appraiser or broker considers your full financials, assets, contracts, market conditions and comparable transactions, and can differ significantly from this estimate.
Why does growth increase the valuation?
Buyers pay for future cash flow, so faster-growing businesses command higher multiples. The calculator applies a growth adjustment above and below a 10% baseline, within sensible limits, to reflect this.
How can I increase what my business is worth?
The biggest levers are stronger and more predictable profit, recurring revenue, lower dependency on the owner, a diversified customer base, consistent growth and clean financial records. Each of these reduces perceived risk and supports a higher multiple.
Which valuation method is right for my business?
It depends mostly on size and stage. Small, owner-operated businesses are usually valued on SDE, because it captures the total benefit to a single owner-operator. Larger companies with a management team are valued on EBITDA, which reflects operating profitability independent of the owner. High-growth or pre-profit companies are often valued on revenue multiples, since earnings understate their potential. Blending the approaches, as this calculator does, hedges against the blind spots of any one method and gives a more balanced range.
Why do two businesses with the same profit sell for different prices?
Because price reflects risk and quality, not just the profit figure. A business with recurring revenue, many customers, documented systems and low owner dependency earns a higher multiple than one with the same profit but concentrated customers, lumpy sales and a founder who does everything. Buyers are paying for how reliable and transferable that profit is, so the multiple — and therefore the price — can differ substantially even when the headline earnings are identical.
Related calculators
Small Business Valuation
A simpler valuation for owner-operated businesses, based on SDE and seller's discretionary earnings.
Business Profit
Turn revenue and expenses into gross, operating and net profit with clear margins and a visual breakdown.
Break-Even
Find the units and revenue you need to cover costs and reach a target profit.
Net Worth
Add up assets and liabilities to find your net worth and ratios.
Sources & methodology
- Formula
- Enterprise Value = EBITDA × Industry Multiple; Revenue Value = Revenue × Revenue Multiple; Blended Value = weighted average of applicable methods
- Reviewed
- September 2026
Primary sources
- NACVA – Business Valuation StandardsNational Association of Certified Valuators and Analysts standards for income, market, and asset approaches to business valuation.
- Damodaran Online – EV/EBITDA Multiples by IndustryNYU Stern School of Business dataset of EV/EBITDA and EV/Revenue multiples by industry sector, updated annually.
- BVR – Private Company Transaction MultiplesBusiness Valuation Resources market transaction data used as basis for private company EBITDA multiple benchmarks.
Calculation methodology is documented on our methodology page. Reviewed by the CalcBundle Quality Review Team.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Business valuation is complex and depends on many factors beyond those captured here. Actual market value may differ.