Business Valuation Calculator
Value a business on earnings multiples.
Enter your values
Enter the adjusted annual earnings in $.
Enter the multiple you are working with.
Enter the cash in $.
Enter the debt in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Estimated value
- $526,000.00
- Enterprise value
- $576,000.00
- Multiple applied
- 3.2×
- Net debt adjustment
- -$50,000.00
Quick answer
Small businesses are commonly valued at a multiple of adjusted earnings, plus cash minus debt.
Value = earnings × multiple + cash − debt
At a glance
| What it does | Value a business on earnings multiples. |
|---|---|
| Category | Business |
| Inputs needed | Adjusted annual earnings, Multiple, Cash, Debt |
| Main output | Estimated value |
| Formula | Value = earnings × multiple + cash − debt |
| Cost | Free — no sign-up, no download |
How to use the Business Valuation Calculator
- 1Enter adjusted earnings (add back owner perks).
- 2Choose a multiple from comparable sales.
- 3Adjust for cash and debt.
Inputs explained
- Adjusted annual earnings($)
- Enter the adjusted annual earnings in $.
- Multiple
- Enter the multiple you are working with.
- Cash($)
- Enter the cash in $.
- Debt($)
- Enter the debt in $.
Worked example
Using the values the calculator loads with:
Inputs
- Adjusted annual earnings180000 $
- Multiple3.2
- Cash40000 $
- Debt90000 $
Results
- Estimated value$526,000.00
- Enterprise value$576,000.00
- Multiple applied3.2×
- Net debt adjustment-$50,000.00
Frequently asked questions
What multiple applies?
2–4× SDE for owner-operated small businesses; higher for recurring revenue.
Why adjust earnings?
Buyers value the profit a new owner would see, not owner-specific expenses.
What do I need to enter into the Business Valuation Calculator?
Just 4 values: adjusted annual earnings, multiple, cash, debt. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Business Valuation Calculator work out the answer?
Small businesses are commonly valued at a multiple of adjusted earnings, plus cash minus debt. It applies the formula Value = earnings × multiple + cash − debt and shows the working so you can check each step by hand.
Is the Business Valuation Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.