Business Valuation Calculator

Estimate business value using revenue multiples, earnings multiples, and asset-based methods by industry.

By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide

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Low Estimate

$100.0K

Average Valuation

$860.0K

High Estimate

$2.0M

Valuation by Method

Revenue Multiple (2-4x)$1.0M - $2.0M
Earnings Multiple (4-8x)$400.0K - $800.0K
Asset-Based (Assets - Liabilities)$100.0K
Average Valuation$860.0K

Use the Business Valuation Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

A reliable sense of what your company is worth supports decisions about strategic planning, raising capital, and preparing for a sale, and this tool produces a quick estimate using several standard methodologies. With roughly 1.5 million small businesses expected to change hands by 2026, that figure carries real weight for owners weighing their options.

Three approaches drive the estimate: Revenue Multiples, Earnings Multiples based on EBITDA, and an Asset-Based method. The two multiple-based approaches apply industry-specific 2026 averages to the financial figures you enter, while the Asset-Based method adds up your reported tangible and intangible assets and subtracts liabilities.

What you get here is an estimate, not a formal valuation; a professional appraisal digs far deeper into due diligence. Leaning on a single method tends to skew the picture, because each one performs differently depending on your industry and the stage your business has reached. Accurate, current financial inputs make the difference between a useful estimate and a misleading one.

Example: Valuing a Small Software Company

  1. 1 Input: A SaaS company in 2026 reports $1,500,000 in annual revenue and $400,000 in EBITDA. Their total assets are $750,000 and liabilities are $100,000. The average 2026 industry revenue multiple for SaaS is 4.5x, and the average EBITDA multiple is 12x.
  2. 2 Calculation: Revenue Valuation: $1,500,000 * 4.5 = $6,750,000. Earnings Valuation: $400,000 * 12 = $4,800,000. Asset-Based Valuation: $750,000 - $100,000 = $650,000.
  3. 3 Result: Based on these inputs, the estimated business value ranges from $650,000 (asset-based) to $6,750,000 (revenue multiple). The EBITDA multiple suggests a value of $4,800,000.
  4. 4 Context: The significant range highlights the importance of using multiple methods. For a high-growth SaaS company, the revenue and EBITDA multiples are often more indicative of market value than the asset-based approach, especially in 2026 where intangible assets and future growth potential are highly valued. This range provides a strong starting point for further negotiation or in-depth valuation analysis.

Source: SBA — Business Guide · Last updated: April 2026

Frequently Asked Questions

How are small businesses typically valued?
The most common methods are revenue multiples (1-3x annual revenue depending on industry), earnings multiples (2-6x SDE or EBITDA), and asset-based valuation. Most small businesses sell for 2-4x seller's discretionary earnings (SDE).
What is SDE and why does it matter for business valuation?
Seller's Discretionary Earnings (SDE) is net income plus the owner's salary, benefits, and non-essential expenses added back. It represents the true economic benefit to a single owner-operator and is the most common metric for valuing businesses under $5M.
What factors increase business valuation?
Key value drivers include recurring revenue, customer diversification (no single client over 15%), documented systems and processes, growth trends, strong margins, transferable contracts, and a management team that can operate without the owner.

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