Business Valuation Calculator

Estimate what a small business is worth using the two methods buyers actually use: a multiple of annual profit and a multiple of annual revenue. Adjust for assets and debt to get an equity value range.

Quick answer

Most small businesses are valued at 2–4× annual profit. Example: $90,000 annual profit at a 3× multiple gives a $270,000 business value, adjusted up for assets owned and down for debt owed.

Your numbers

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Annual revenue

Annual profit (owner earnings)

Profit multiple

Revenue multiple

Assets included in the sale

Debt the buyer takes on

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Estimated value

$355,000.00

Realistic range: $284,000.00 – $426,000.00.

By profit multiple

$270,000.00

By revenue multiple

$400,000.00

An estimate, not an appraisal: buyers pay for provable profit. Clean books, recurring customers, and a business that runs without you move the multiple more than anything else on this page.

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How this valuation works

Two estimates are calculated and averaged: annual profit × your profit multiple, and annual revenue × your revenue multiple. Assets included in the sale are added, debt the buyer assumes is subtracted, and a ±20% band shows the realistic negotiating range.

Typical small-business multiples

Business type	Profit multiple	Revenue multiple
Owner-operated service	2–3×	0.5–1×
Established local business	3–4×	0.8–1.5×
E-commerce / product brand	2.5–4×	1–2×
Software / recurring revenue	4–8×	2–5×

Frequently asked

Most small businesses are valued as a multiple of annual profit (often seller's discretionary earnings or EBITDA). Typical small-business multiples run 2× to 4× profit. Revenue multiples are used when profit is thin or reinvested.

Owner-operated service businesses usually trade at 2–3× profit. Established businesses with staff, contracts, and clean books reach 3–5×. Fast-growing software can exceed 5× profit or 2–5× revenue.

Recurring revenue, low customer concentration, documented systems, a team that runs without the owner, and clean, verifiable financials. Each of these pushes the multiple up.

No. This is a quick estimate to frame a conversation. A sale, a loan, or a tax event needs a formal valuation from an accredited appraiser who reviews your actual financials.