🏢 Business Valuation Calculator
Estimate a rough value for a small business using the common earnings-multiple method.
How the earnings multiple method works
One of the most common ways to estimate a small business’s value is to multiply its annual earnings (net profit, seller’s discretionary earnings, or EBITDA) by a multiple that reflects industry norms, growth, and risk. Typical small-business multiples range from about 2x to 5x annual earnings, though this varies widely by industry and size.
How this calculator works
Enter the business’s annual revenue and annual net profit, then choose a multiple that reflects comparable sales or industry benchmarks. The calculator multiplies profit by the multiple to produce an estimated value, and also shows that value as a percentage of revenue for a quick sanity check.
This is a simplified, general-purpose estimate for educational and planning purposes only. A real valuation should also weigh assets, liabilities, growth trends, and market conditions, ideally with a qualified professional.