Business Valuation Calculator

    Enter annual net profit, choose an industry multiple or custom multiple, add revenue and optional asset value. The calculator shows earnings-based valuation, revenue-based check, asset add-on, and a valuation range so you can sense-check offers or listing prices.

    Instant calculations · Editable fee assumptions · Export-ready results

    Inputs

    Values update results instantly. Adjust fee assumptions to match your seller dashboard.

    Financials

    USD

    Yearly profit after add-backs. Use seller discretionary earnings for small businesses.

    USD

    Total yearly sales. Used for revenue multiple cross-check.

    Valuation

    Choose typical multiple for your business type, or Custom.

    Your own profit multiple. Only used when industry is Custom.

    Assets

    Add tangible asset value like inventory and equipment on top of earnings valuation?

    USD

    Inventory, equipment, and other tangible assets to add.

    Results

    Live estimates based on your inputs and editable fee assumptions.

    Annual profit

    $100,000.00

    Profit used for multiple.

    Valuation multiple

    3

    Multiple applied.

    Earnings-based valuation

    $300,000.00

    Profit times multiple.

    Revenue multiple implied

    1.50

    Revenue check — half of earnings multiple.

    Revenue-based valuation

    $750,000.00

    Revenue times implied multiple.

    Asset value

    $0.00

    Tangible assets added if enabled.

    Total valuation

    $750,000.00

    Max of earnings vs revenue plus assets.

    Range low (80%)

    $600,000.00

    Conservative end of range.

    Range high (120%)

    $900,000.00

    Optimistic end of range.

    What this means

    At 3x profit, earnings value $300000, revenue check $750000 at 1.50x revenue, plus $0 assets = $750000 total, range $600000-$900000.

    Business valuation

    Interactive breakdown of fees, costs, and remaining profit.

    Distribution

    • Earnings value
      $300,000.00
      28.6%
    • Revenue check
      $750,000.00
      71.4%

    Total $1,050,000.00 · 2 segments · interactive

    Line-item breakdown

    Dollar amounts, share of revenue, and visual proportion.

    Annual profit
    $100,000.00
    Valuation multiple
    3
    Earnings valuation
    $300,000.00
    Revenue multiple
    1.50
    Revenue valuation
    $750,000.00
    Asset value
    $0.00
    Total valuation
    $750,000.00
    Range low
    $600,000.00
    Range high
    $900,000.00

    Assumptions used

    • • Multiple 3x (3 industry)
    • • Earnings 100000 × 3 = 300000
    • • Revenue 500000 × 1.5 = 750000
    • • Assets not included

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    How it works

    Methodology & formulas

    This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.

    Calculation steps

    1. 1Pick profit multiple from industry or custom.
    2. 2Calculate earnings-based valuation from profit times multiple.
    3. 3Calculate revenue-based valuation using half multiple as revenue proxy.
    4. 4Add tangible assets if enabled.
    5. 5Use max of earnings vs revenue plus assets for headline total to avoid undervaluing asset-light businesses.
    6. 6Apply 80% to 120% band for range.

    Formulas

    • actualMultiple = custom if Custom else industryMultiple
    • earningsValuation = profit × multiple
    • revenueValuation = revenue × (multiple × 0.5)
    • total = max(earningsValuation, revenueValuation) + assets
    • low = total × 0.8, high = total × 1.2

    Important assumptions

    • Actual multiple = customMultiple if industryMultiple is 0 (Custom), otherwise industryMultiple.
    • Earnings valuation = annualNetProfit × actualMultiple.
    • Revenue valuation = annualRevenue × (actualMultiple × 0.5). Revenue multiple assumed half earnings multiple for cross-check.
    • Asset value added only if includeAssets is true.
    • Total valuation = max(earningsValuation, revenueValuation) + assetValueField.
    • Range low = total × 0.8, high = total × 1.2 to show negotiation band.
    • Simplified model — no DCF, growth premium, or risk adjustments.

    Worked example

    $100k profit ecommerce store

    Annual profit $100k, revenue $500k, ecommerce multiple 3x, no extra assets.

    Earnings valuation $300k, revenue check $750k (500k × 1.5x implied), total takes max $750k, range $600k to $900k. For lower revenue multiple markets, buyers often anchor closer to earnings $300k — use revenue check as upside story for growth.

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