Startup
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? 2025-2026 sale data
A business is usually valued at a multiple of seller's discretionary earnings (SDE) below about $2 million in price and a multiple of EBITDA above it. The multiple is the input most owners do not know, so anchor on closed-transaction figures, then adjust for growth, recurring revenue and customer concentration.
| Business type or size | Multiple | Source |
|---|---|---|
| All small businesses sold | 2.61x SDE; 0.69x revenue | BizBuySell, 2025 average (9,586 deals) |
| Service businesses | 2.58x SDE; 0.82x revenue | BizBuySell, businesses sold 2021-2025 |
| Retail | 2.62x SDE; 0.53x revenue | BizBuySell, businesses sold 2021-2025 |
| Restaurants | 2.15x SDE; 0.39x revenue | BizBuySell, businesses sold 2021-2025 |
| IT and software services | 3.10x SDE; 1.02x revenue | BizBuySell, businesses sold 2021-2025 |
| Websites and e-commerce | 3.32x SDE; 1.07x revenue | BizBuySell, businesses sold 2021-2025 |
| Software, app and SaaS | 3.31x SDE; 1.70x revenue | BizBuySell, businesses sold 2021-2025 |
| Main Street, under $500K price | 2.0x SDE | IBBA Market Pulse, Q1 2026 |
| Main Street, $500K-$1M | 2.8x SDE | IBBA Market Pulse, Q1 2026 |
| Main Street, $1M-$2M | 3.3x SDE | IBBA Market Pulse, Q1 2026 |
| Lower middle market, $2M-$5M | 4.0x EBITDA | IBBA Market Pulse, Q1 2026 |
| Lower middle market, $5M-$50M | 4.5x EBITDA | IBBA Market Pulse, Q1 2026 |
BizBuySell multiples are averages of businesses sold through its marketplace: the all-business figure is the 2025 average from its year-end Insight Report, and the sector figures are 2021-2025 averages from its industry valuation benchmark reports. IBBA figures are advisor-reported multiples by deal size from the Q1 2026 Market Pulse. Checked 2026-10-19. The how to value a small business guide works the method end to end.
Worked examples, computed by this calculator
Each range is the calculator's own output for the stated inputs. The low and high ends move the multiple down and up around the figure you enter, the spread a buyer and seller usually negotiate inside.
| Business | Low | Mid | High |
|---|---|---|---|
| Typical service business: $158,950 SDE at the 2.58x service average | $328,073 | $410,091 | $492,109 |
| Small software or SaaS business: $240,000 SDE at the 3.31x software average | $635,520 | $794,400 | $953,280 |
| Median 2025 sale blended: $703,000 revenue at 0.69x and $158,950 SDE at 2.61x | $347,846 | $449,965 | $552,085 |
| Lower middle market: $2.5M EBITDA at the 4.0x IBBA $2M-$5M multiple | $8,000,000 | $10,000,000 | $12,000,000 |
The same $158,950 of SDE is worth about $410,091 at the service-business average and would be worth more at the software average, which is why the sector multiple matters more than any other input. The lower-middle-market row shows the switch to EBITDA once a business is large enough for a buyer to hire a manager.
Valuing a software or SaaS company
Small software, app and SaaS businesses sold through BizBuySell from 2021 through 2025 averaged 3.31x SDE (1.70x revenue), and IT and software services firms 3.10x SDE or 1.02x revenue, both above the 2.61x average for all businesses sold in 2025. Use the SDE method for an owner-run product, and the EBITDA method once the company has a team and passes roughly $2 million in value. Public-market software multiples are far higher than private sale multiples; the bootstrapped software valuation multiples article traces the Damodaran public benchmark down to a private, bootstrapped discount, and the one-person SaaS valuation tool prices a solo SaaS on ARR.
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 data puts the average small-business sale at 2.61× SDE; over 2021-2025 its sector averages are service businesses 2.58×, retail 2.62×, restaurants 2.15×, websites and e-commerce 3.32× and software, app and SaaS businesses 3.31×. By deal size, IBBA's Q1 2026 Market Pulse reports 2.0× SDE under $500K rising to 3.3× at $1M-$2M, then 4.0×-4.5× EBITDA in the lower middle market. The sourced table above lists each figure.
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).
Figures from BizBuySell 2025 Insight Report and valuation benchmarks and IBBA Market Pulse Q1 2026, checked on October 19, 2026.
What does the Business Valuation Calculator calculate, and which formula does it use?
The Business Valuation Calculator estimates what a small-to-mid-size business is worth using three multiple-based methods: revenue multiple (annual revenue × multiple), SDE multiple (Seller's Discretionary Earnings × multiple), and EBITDA multiple (EBITDA × multiple). Each returns a low–mid–high range, and it blends the methods you fill in into one averaged low-to-high estimate. It does not run a DCF.
Last updated .
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 figures put the average small-business sale in 2025 at 2.61× SDE, and its 2021-2025 sector averages at 2.58× for service businesses, 2.62× retail, 2.15× restaurants, 3.32× websites and e-commerce and 3.31× software, app and SaaS. IBBA's Q1 2026 Market Pulse reports 2.0× SDE for deals under $500K, 2.8× for $500K-$1M and 3.3× for $1M-$2M, then 4.0×-4.5× EBITDA from $2M to $50M. Start from the figure 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.
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Background on the Business Valuation Calculator
- Examples Sales Forecast Examples: 4 Worked SaaS Revenue Forecasts
Sales forecast examples: four worked SaaS revenue forecasts with a month-by-month table, showing how starting MRR, growth and pipeline conversion compound.
Articles
- 11 min read 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 $798,600 blended.
- 7 min read 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.
- 9 min read Bootstrapped Software Valuation Multiples
Bootstrapped software valuation: Damodaran's software EV/EBITDA by year (28.43x in January 2024, 24.48x in 2026) and the private multiples it sells at.
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Use it from code
The same calculation as a JavaScript module you can import. It runs where you import it, with no request, key or rate limit.
import { compute } from "https://aibizhub.io/engines/business-valuation-calculator.js";Input and output contract, TypeScript types and the guide for agents.