Business valuation calculator
Enter the business's earnings, choose the sector and the size band, and see a low, typical and high value range built from published multiples. A starting point for a conversation, not an appraisal.
The business (example values: replace them with yours)
Not sure of the band? Pick the one the typical value lands in; the tool tells you if it would move.
Where the multiple comes from
| Piece | Low | Typical | High |
|---|
Source for the size-band multiples: IBBA and M&A Source, Market Pulse Highlights, Q4 2025: average multiples by deal size across Q1 to Q4 2025. Deals under $2M in price are reported as multiples of SDE, $2M to $50M as multiples of EBITDA. The low and high of each band are the lowest and highest quarterly averages in 2025, widened by 0.25x each way; the sector adjustment (at most ±0.5x) is our adjustment, not the survey's.
Multiples by size band (2025 averages)
| Sale price | Basis | 2025 quarterly averages |
|---|---|---|
| Under $500K | SDE | about 2.0x |
| $500K to $1M | SDE | 2.8x to 3.0x |
| $1M to $2M | SDE | 3.0x to 3.3x |
| $2M to $5M | EBITDA | 3.5x to 4.1x |
| $5M to $50M | EBITDA | 4.5x to 5.5x |
IBBA and M&A Source Market Pulse, Q4 2025 highlights. Averages of closed deals reported by brokers; your deal can land outside them.
The range is a starting point, not an appraisal. What moves a business inside its range: revenue that is growing or shrinking, how much of sales comes from the biggest customer, whether it runs without the owner, the condition of the equipment and the books, and the deal terms (a seller note or earn-out usually buys a higher headline price). If you are selling, start with How to sell a business and our sell-side page. If you are buying, check the number against what the business can carry in debt with the SBA loan calculator.
Questions people ask
What multiple do small businesses sell for?
In the IBBA and M&A Source Market Pulse for Q4 2025, businesses under $500,000 in price sold for about 2.0 times SDE on average, $500,000 to $1 million for about 2.8 to 3.0 times SDE, $1 million to $2 million for 3.0 to 3.3 times SDE, $2 million to $5 million for 3.5 to 4.1 times EBITDA, and $5 million to $50 million for 4.5 to 5.5 times EBITDA, across the four quarters of 2025.
Should I value my business on SDE or EBITDA?
Under about $2 million in price, brokers and buyers quote multiples of SDE, the owner-operator's total earnings. From $2 million up they quote multiples of EBITDA, with a manager's salary left in the costs. Use the SDE and EBITDA calculator to get both numbers from your P&L.
Why is the range so wide?
The multiple is an average across many deals. Within one size band, a business with growing revenue, no customer over 10 percent of sales, a manager in place and clean books sells near the top; one that depends on the owner and has one big customer sells near the bottom, or not at all.
Does the sector change the multiple?
A little, and less than most owners hope. Recurring-revenue and healthcare businesses tend to sell for more, restaurants and e-commerce for less. This calculator moves the multiple by at most half a turn for sector, and labels that part as our adjustment, not the survey's.
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Book a free callEstimates only: the range is a starting point, not an appraisal, and a real price depends on growth, customer concentration, owner dependence, assets and deal terms. Acquisitions.com is an advisory firm, not a broker-dealer or a lender; financing comes from third-party lenders and investors. Not financial advice.