Based on 9,500+ real U.S. business sales
Before You Sell, Know What It's Actually WorthWorth TodayReally WorthTruly Worth
Sellers who anchor to a fantasy number waste a year. Sellers who know their real range negotiate from strength.
How the number is calculated
Selling a business starts with one number. Every conversation, with brokers, buyers, or your own family, gets easier when you know the realistic range. Run the calculator, then use the breakdown to see which lever (growth trend, size, owner-dependency) moves your multiple most before you list.
Small businesses sell for a multiple of SDE (seller's discretionary earnings): your profit plus your salary plus anything personal the business pays for. We apply realistic closed-deal multiples, adjusted for your growth trend, age, and size. Real transaction data. Not a guess.
This tool provides an educational estimate, not a formal appraisal or an offer. Actual sale prices depend on financials, transferability, and deal terms.
Questions, answered
How do you calculate what a business is worth?
Most small businesses sell for a multiple of SDE (seller's discretionary earnings): annual net profit plus the owner's salary plus personal expenses run through the business. Market multiples run roughly 1.7x to 3x SDE for owner-operated businesses, scaling higher with size. This calculator applies real closed-deal multiples by industry with size and trend adjustments.
What is SDE?
SDE stands for seller's discretionary earnings: the total financial benefit a single owner-operator gets from the business in a year. It is net profit plus the owner's salary plus perks like a vehicle, phone, health insurance, or travel the business pays for. Small businesses are priced as a multiple of SDE.
Why is my number lower than multiples I see published?
Published "average multiples" are dragged up by large deals. Real broker data (IBBA Market Pulse) shows businesses selling for under $500K have closed at a steady 2.0x SDE median for years. This calculator is calibrated to what businesses actually close at for their size, so the range you see is one you could realistically defend in a negotiation.