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TinyBizTools

Business Valuation Calculator

Estimate your business value using revenue multiple, earnings multiple, and asset-based methods. Free business valuation calculator — instant range.

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Ready to calculate

Enter your financial details above to estimate your business valuation range.

How Much Is My Business Worth?

There’s no single answer — but three common methods give you a useful range.

How to Use This Calculator

  1. Enter your annual revenue — total sales for the past 12 months.
  2. Enter annual profit — net profit after all business expenses (before taxes).
  3. Enter total assets — equipment, inventory, accounts receivable, cash, and other assets.
  4. Enter total liabilities — loans, payables, and other debts.
  5. See all three valuation methods side by side with a combined range.

Three Valuation Methods Explained

The Formulas

Revenue Multiple:

Low Estimate = Annual Revenue × 1
Mid Estimate = Annual Revenue × 2
High Estimate = Annual Revenue × 3

Earnings Multiple:

Conservative = Annual Profit × 3
Mid = Annual Profit × 5
Optimistic = Annual Profit × 7

Asset-Based:

Net Asset Value = Total Assets − Total Liabilities

Example: A catering business with $500K revenue, $80K profit, $150K assets, $30K liabilities:

  • Revenue multiples: $500K – $1.5M
  • Earnings multiples: $240K – $560K
  • Asset-based: $120K
  • Overall range: ~$120K – $1.5M

A business broker would likely value this at $350K–$500K based on the earnings multiple method, adjusted for growth and risk factors.

When Each Method Makes Sense

MethodBest ForNotes
Revenue MultipleService biz, SaaSSimple, common for quick estimates
Earnings MultipleOwner-operated SMBsMost accurate for actual M&A
Asset-BasedManufacturing, retailGood floor value / distressed situations

Frequently Asked Questions

Which valuation method should I use?
Use all three as a range. Revenue multiples work well for service businesses and SaaS. Earnings multiples (SDE/EBITDA) are most common for owner-operated businesses and the preferred method for business brokers. Asset-based is best for asset-heavy businesses (manufacturing, real estate) or as a floor value.
For small businesses, 2–4× SDE (Seller's Discretionary Earnings) is typical. This calculator uses 3×–7× which covers most scenarios from distressed sales to premium businesses. Factors that increase your multiple: recurring revenue, long-term customer relationships, diverse customer base, strong systems and processes, and year-over-year growth.
Focus on recurring revenue (subscriptions beat project work), reduce owner dependency (document processes, delegate), diversify your customer base (no single customer >15% of revenue), show consistent growth, and clean up your financials 2–3 years before selling.
For any actual transaction (sale, partner buyout, estate planning, financing), get a professional. A certified business appraiser or M&A advisor considers much more than simple multiples — management quality, market position, growth trajectory, and industry comparables all factor in.
SDE (Seller's Discretionary Earnings) adds back owner compensation and perks — it's used for small businesses where the owner works in the business. EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization) is used for larger businesses and doesn't add back owner salary (assumes a manager could replace the owner).

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