Business Valuation Calculator — Estimate Your Business Worth

Business Valuation Tool

Estimate What Your Business Is Worth

This calculator uses EBITDA multiples by industry — the same methodology used by business brokers and M&A advisors — adjusted for the factors that move your number up or down. For a formal valuation used in a transaction, SBA loan, or legal proceeding, you’ll need a certified analysis.

📈 Business Valuation Calculator

Enter your business details below. All figures are estimates only.

Annual Revenue

Your total gross revenue for the most recent 12 months.

EBITDA or Net Profit

Use EBITDA if known. Net profit is an acceptable substitute.

Industry

Business Age

Owner Dependency

Revenue Growth Trend

Estimated Valuation Range

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Low estimate Your estimate is within this range High estimate

Disclaimer: This is a rough estimate only. Formal business valuations require a certified analysis. This calculator uses market multiples and does not account for assets, liabilities, customer concentration, contract quality, or specific deal terms. Numbers shown are illustrative estimates only.

Want a Formal Valuation?

This calculator gives you a ballpark. Michelet Financial provides certified business valuation reports used for SBA loans, M&A transactions, and exit planning. Book a free consultation with Brandt Michelet, Financial Strategist.

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Education

How Business Valuations Work

The most common method for valuing a private business is the EBITDA multiple approach. A buyer or investor takes your earnings before interest, taxes, depreciation, and amortization — then multiplies it by a factor that reflects how valuable those earnings are in your industry. A business generating $500,000 in EBITDA valued at 4x is worth $2 million. That multiple is not arbitrary: it reflects risk, growth potential, and how reliably the earnings will continue after a sale.

What Moves Your Multiple Up

Buyers pay premium multiples for businesses that run without the owner, grow year-over-year, have recurring or contracted revenue, and operate in industries with strong deal activity. A construction company growing at 15% per year with a strong management team can command 4x — near the top of its industry range. The same business where the owner is the primary client relationship, with flat revenue, might trade at 2x.

When You Need a Formal Valuation

A calculator gives you a planning-level estimate. For any transaction — selling your business, buying out a partner, securing an SBA 7(a) loan, estate planning, or litigation — you need a certified valuation from a qualified financial professional. Michelet Financial prepares formal business valuation reports that satisfy lender, legal, and transaction requirements nationwide.

Industry	EBITDA Multiple Range
Technology / SaaS	5x – 10x
Healthcare	5x – 8x
Manufacturing	4x – 6x
Professional Services	3x – 5x
Distribution / Logistics	3x – 5x
Construction / Trades	2x – 4x
Restaurant / Hospitality	2x – 4x
Retail	1.5x – 3x

Ranges represent typical market transactions. Actual multiples vary based on company-specific factors and current deal market conditions.

FAQ

Business Valuation Questions

How accurate is this calculator?

This calculator gives you a useful ballpark estimate based on industry-standard EBITDA multiples, adjusted for key business factors. However, it cannot account for your specific assets, liabilities, customer concentration, contract quality, or market conditions. For transactions — SBA loans, M&A deals, partner buyouts, or estate planning — you need a formal certified valuation from a qualified financial professional.

What is EBITDA and why does it matter for business valuation?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It represents the core operating cash flow of a business before financing and accounting decisions. Buyers and lenders use EBITDA multiples to value businesses because it allows apples-to-apples comparison across companies with different debt structures and depreciation schedules. A business valued at “5x EBITDA” is worth five times its annual EBITDA. If you only know your net profit, that’s a reasonable starting point — EBITDA is typically 15–30% higher than net profit for most small businesses.

What’s a good valuation multiple for my business?

Valuation multiples vary significantly by industry. Technology and SaaS businesses typically command 5x–10x EBITDA, while restaurants and retail may trade at 1.5x–4x. Within any industry, multiples depend on your growth rate, how dependent the business is on you personally, recurring revenue quality, customer concentration, and profitability trends. A formal valuation analysis examines all of these factors to determine where your business sits in the range — and what you can do to move it higher before a sale.

Free Business Valuation Calculator