My plan

Business Valuation Estimator

Estimate what a small business may be worth using seller's discretionary earnings (SDE) and a multiple range — then check if the loan would be covered.

Only if verifiable in the books.
Often priced on top of the multiple.
Illustrative placeholder — not a market benchmark.

Buyer check (optional)

See all my numbers

How it's calculated

  • SDE = net profit + owner's salary and benefits + add-backs + interest + depreciation/amortization.
  • Value range = SDE × your low and high multiples, plus inventory if entered. There is no universal multiple; it depends on industry, size, growth, risk, location and deal terms. Ask a broker or appraiser for comparable sales.
  • DSCR = (SDE − your salary) ÷ annual loan payments. Lenders set their own minimums.
  • This is an estimate for planning, not an appraisal. SBA-financed purchases often require a formal business valuation.
Estimates only. Results depend on the numbers you enter and are not financial, tax or legal advice.