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

Ever wonder what your business is worth?

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

The formula we use is based on the Multiple of Earnings method which is most commonly used in small business valuation. 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! , How to Buy a 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): Automotive > Auto Body Automotive > Auto Repair, Parts & Services Automotive > Automotive Dealers Automotive > Car Wash Automotive > Gasoline Service Stations Automotive > Wrecking Yard Construction Construction > Special Trades Entertainment > Entertainment/Film Production Industries Franchise Internet > Business Services (B2B) Internet > Consumer Services (B2C) Manufacturing Manufacturing > Apparel & Finished Fabrics Manufacturing > Chemicals & Allied Products Manufacturing > Electronic & Electrical Equipment Manufacturing > Fabricated Metal Products Manufacturing > Food & Kindred Products Manufacturing > Furniture & Fixtures Manufacturing > Industrial & Commercial Machinery Manufacturing > Leather & Leather Products Manufacturing > Lumber & Wood Products Manufacturing > Measuring & Analyzing Instruments Manufacturing > Miscellaneous Manufacturing Manufacturing > Paper & Allied Products Manufacturing > Personal Care Products Manufacturing > Petroleum Refining Manufacturing > Primary Metal Industries Manufacturing > Printing,Publishing Manufacturing > Rubber & Plastic Products Manufacturing > Stone, Clay, Glass, Concrete Manufacturing > Textile Mill Products Manufacturing > Tobacco Products Manufacturing > Transportation Equipment Manufacturing > Vinyl Products Restaurants > Bars/Taverns Restaurants > Coffee Shop Restaurants > Other Eating & Drinking Places Restaurants > Restaurant Retail Retail > ATM Machines Retail > Apparel & Accessory Stores Retail > Bicycle Shop Retail > Bldg Materials, Home & Garden Retail > Coin Laundry Retail > Convenience Stores Retail > Florist, Gifts Retail > Furniture Retail > General Merchandise Store Retail > Gym, Physical Fitness Retail > Home Furniture & Furnishings Retail > Jewelry Design and Sales Retail > Liquor Stores Retail > Medical Products & Supplies Retail > Miscellaneous Retail Retail > Other Food Stores Retail > Pet Shops & Supplies Retail > Postal Centers Retail > Supermarkets Retail > Tobacco & Related Products Retail > Vending Machines Retail > Video Rentals Services Services > Accounting Services > Agents & Brokers Services > Amusement & Recreation Services > Beauty & Barber Shops Services > Business Services Services > Computer & Software Services > Dry Cleaning/Laundry Services > Educational Services Services > Engineering Services > Freight Carriers, Moving/Delivery Services > Health, Medical & Dental Services > Hotels & Other Lodging Services > Insurance Services > Jewelry Repair Services > Landscaping & Yard Services Services > Legal Services Services > Magazine Services > Marine Repair, Parts & Services Services > Marketing, Public Relations Services > Membership Organizations Services > Miscellaneous Repair Services > Other Business Services Services > Other Miscellaneous Services Services > Other Personal Services Services > Other Travel and Transportation Services > Pet Care & Grooming Services > Tanning Salons Services > Travel Agencies Wholesale/Distribution Wholesale/Distribution > Durable Goods Wholesale/Distribution > Non Durable Goods

Discretionary 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.