Free Online Business Valuation Calculator. A Quick and Simple way to Value your Business.

Ever wonder what your business is worth?

No need to spend time or money on a consultant. Just enter in the information on our online spreadsheet and our software will calculate the value of your small business.

The formula we use is the Multiple of Earnings method which is most commonly used to calculate the value of small businesses. The multiple is similar to using a discount cash flow, or capitalization rate used by top business valuation appraisers and top analysts. We’ve just simplified it for small business owners.

For a more personalized and in depth business valuation, we provide a free business evaluation and consultation! for local business owners who are thinking about selling their Business.

Learn How to Sell your Business!

Step 1: Determine the Discretionary Earnings of the business.

Discretionary Earnings is the Net earnings of the business before Interest, Tax's, Depreciation and Amortization plus Owners Salary and non recurring expenses.

Multiple of Earnings Method
12 Month Period	Last Year	2 Years Ago	3 Years Ago
Source:	TR	TR	TR
Sales:	$	$	$
Cost of Goods Sold:	$	$	$
Operating Expenses:	$	$	$
Addbacks:
Officer Salaries:	$	$	$
Depreciation:	$	$	$
Interest:	$	$	$
Other:	$	$	$

Step 2: Determine the Multiple of Earnings to Use.

To determine the multiple of earnings to use, we start with a base number determined as follows:

Industry Factors (Choose 1): Retail Retaurant Automotive Service Manufacturing Base Net Earnings (Choose 1): Below $60,000 Above $150,000 Other Earnings Trend (Choose 1): Declining Revenues Sustainable Increases +30% Non Sustainable Increase Steady Revenue

Risk Factors: No Employees, non internet Industry in Decline Poor books and records <3 Yrs in Biz <1 Yr in Biz Upside/Low Risk Factors: SBA Financable Franchise Hot Industry 10+ Yrs in Biz

Disclaimer: This tool should only be used as a general indicator of value. There are other factors associated with the sale of a business that can impact the value of a business that only an experienced broker will be able to identify. Please contact us for a more personal evaluation of your business and for suggestions on how to prepare your business for the highest sale possible.