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What is your business worth?

Small Business Valuation Calculator

Estimate the value of your small business considering various financial metrics

Business Valuation Comparison
Valuation Summary
$451,000
Estimated Business Value
$396,000
Revenue-Based
$495,000
Profit-Based
$462,000
EBITDA-Based

How Valuation is calculated

Business Value = (Revenue × Revenue Multiple + Profit × Profit Multiple + EBITDA × EBITDA Multiple) ÷ 3 × Adjustment Factor

Averaging the revenue, profit, and EBITDA valuation methods gives a base estimate, then business age, growth rate, owner dependency, and market position added 10% to it. That puts your adjusted business value at $451,000 — $396,000 from the revenue method, $495,000 from profit, and $462,000 from EBITDA. Your 4.2x EBITDA multiple sits in the typical 3-8x range buyers and brokers use for small businesses.

Business Financials
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Industry Multipliers
Business Factors

What does “business valuation” actually mean?

Business valuation means finding out how much a business may be worth if it is sold. It helps owners, buyers, and investors understand the estimated price of the business in the market. The value is usually not one exact number. It is often a range based on factors such as profit, assets, industry conditions, and expected growth.

Two businesses can earn the same revenue but still have different values. Profit levels, number of customers, dependence on the owner, and market demand can change the value.

Revenue shows how much money the business brings in. Valuation shows how much someone may be willing to pay to own the business.

Business value is based on both financial data and market comparisons. Financial data includes earnings, assets, and cash flow. Market comparisons look at what similar businesses have sold for. This calculator gives an estimate using common small business valuation methods.

Business valuation calculator formula: value equals the average of revenue, profit and EBITDA methods times an adjustment, with a worked example

How to estimate your business’s value using this calculator?

The calculator has three steps. Each one asks for a different type of information. Here’s what to enter and what it means.

Step 1: Business financials

Enter three numbers from your business: Annual revenue, Annual net profit, and EBITDA.

Annual revenue is the total money your business brought in over the past year, before any expenses. Annual net profit is what’s left after you’ve paid all your costs. EBITDA is your profit before accounting for interest, taxes, depreciation, and amortization.

Think of it as a cleaner version of profit that makes it easier to compare businesses.

Not sure where to find these? Check your last year’s income statement, or add up 12 months of income and expenses from your bank records.

Step 2: Industry multipliers

A multiplier is basically a number that tells you how much buyers in your industry are willing to pay, relative to what a business earns.

For example, if your profit is $100,000 and the typical profit multiple in your industry is 3x, the estimated value comes out to $300,000. You enter separate multipliers for revenue, profit, and EBITDA.

If you don’t know your industry’s typical range, sites like BizBuySell or DealStats list average sale multiples by business type.

Step 3: Business factors

This step adjusts your valuation based on the bigger picture. Enter your business age, how fast it’s growing, how much it depends on you personally, and where it stands in the market.

The owner dependency piece matters a lot. If the business can’t run without you, buyers will discount the price. Low dependency commands a higher multiple.

Once you fill in all three steps, the calculator shows you three estimates side by side: one based on revenue, one on profit, and one on EBITDA. Use them together to get a realistic range, not just a single number.

Why knowing your value matters (even if you’re not selling)?

Many owners only think about valuation when they plan to sell the business. It is better to understand the value earlier. It helps in several ways.

Assists in decision-making

Knowing the value of your business helps you make better decisions. For example, reducing owner dependency or improving systems can increase the value of your business.

Better position when raising capital

Investors and lenders look at business value before investing or lending money. If you know your value, you can discuss funding with better preparation.

Helps with partnership planning

If a business has partners, valuation helps decide a fair price if one partner wants to exit. Agreeing on a valuation method early avoids conflicts later.

Clear growth target

Valuation gives a clear goal. Instead of saying “grow the business,” you can aim to increase the business value over time by improving profit, growth margin, and stability.

Here’s to note that this calculator gives you an estimate, not a certified appraisal. It’s useful for planning, goal-setting, and early conversations. If you’re actually selling your business or dealing with legal or financial matters, talk to a professional appraiser.

Frequently asked questions

Three common methods: multiply annual revenue by a revenue multiple, multiply annual net profit by a profit multiple, or multiply EBITDA by an EBITDA multiple. Averaging the three gives a more balanced estimate than relying on any single method, since each weighs a different part of the business.
As a rule of thumb, small businesses are often valued at 0.5x-3x annual revenue or 3x-8x EBITDA, with the exact multiple set by industry, growth rate, and market conditions — a high-growth software business commands a higher multiple than a slow-growth local service business. Always confirm the multiple against recent comparable sales in your specific industry rather than treating these as fixed numbers.
Business age, growth rate, owner dependency, and market position all adjust the base valuation up or down. A business that's been profitable for 10+ years, growing 20%+ a year, runs without the owner, and holds a strong competitive position is worth more than one with identical revenue but none of those traits — because a buyer is paying for how reliably that revenue continues.
Each method looks at a different signal: revenue ignores costs entirely, profit includes everything after tax and interest, and EBITDA strips out financing and accounting choices to focus on core operating performance. A business with thin margins will look worth less under the profit method than the revenue method — that gap is informative, not an error, which is why averaging the three is more useful than picking one.
It depends on the industry and profitability, not revenue alone — a common starting point is 0.5x-3x annual revenue, which would put a $500,000-revenue business somewhere between $250,000 and $1.5 million using the revenue method by itself. Two businesses with identical revenue can be worth very different amounts depending on profit margin, growth rate, and how dependent the business is on the owner, which is why this calculator also factors in profit and EBITDA rather than revenue alone.
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