Business Valuation Calculator

RetireStack

📊 Enter Your Business Numbers

Annual Revenue *

Total gross revenue for the last 12 months

Estimated Net Profit (optional)

Leave blank if unknown — we'll estimate at 15% margin

Your Annual Salary Draw

The salary you pay yourself. Add-backs start here.

Add-Backs (annual)

Depreciation, personal expenses the buyer won't have, one-time costs

Industry *

Multiple auto-populates based on industry selection

Growth Trend

Years in Business

Owner Dependency

Customer Concentration

📜 Your Estimated Business Value

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Enter your revenue and industry above, then click
"Calculate My Business Value" to see your estimate.

Retirement Income from Sale If you sold at market value and deployed proceeds using the 4% rule:

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/month for life, inflation-adjusted

Conservative Estimate

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Reflects tough market conditions or buyer distress

Market Estimate

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Most likely price a qualified buyer pays

Optimistic Estimate

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Premium for strong financials, clean books, motivated buyer

Ready to sell? Get a broker to find buyers.

Business brokers typically achieve 20–30% higher sale prices than owner-direct sales. They charge 8–12% of the sale price on the first $1M. For a business in this range, a quality broker is almost always worth the fee.

Find a Business Broker on SmartBiz →

2026 Industry Multiples Reference Table

Base SDE multiples sourced from BizBuySell Insight Reports, IBBA Q1 2026, and DealStats. Final value adjusts up or down based on your specific business factors.

Industry	Conservative	Market	Optimistic	Range
HVAC / Plumbing / Electrical	2.5×	3.2×	4.0×	$300K–$5M
Veterinary Practice	3.5×	4.5×	6.0×	$400K–$3M
Medical / Dental Practice	3.0×	4.0×	5.5×	$350K–$4M
Tech / SaaS (recurring revenue)	4.0×	6.0×	8.0×	$500K–$20M
IT Services / MSP	2.5×	3.5×	5.0×	$200K–$5M
Professional Services (CPA, Law, Consulting)	2.5×	3.5×	4.5×	$250K–$3M
Marketing / Advertising Agency	2.5×	3.5×	5.0×	$200K–$4M
Manufacturing	3.0×	4.0×	5.5×	$400K–$10M
Insurance Agency	2.5×	3.5×	5.0×	$200K–$3M
Restaurant / Food Service	2.0×	2.5×	3.0×	$150K–$2M
Self-Storage	3.5×	5.0×	7.0×	$500K–$8M
Staffing / Recruiting Agency	2.0×	2.8×	4.0×	$250K–$5M
Construction / General Contractor	2.0×	2.8×	3.5×	$200K–$3M
Retail Store	1.5×	2.0×	2.5×	$100K–$2M
Auto Repair / Body Shop	2.0×	2.5×	3.0×	$150K–$1.5M
Salon / Spa / Beauty	1.5×	2.0×	2.8×	$100K–$1M

Frequently Asked Questions

What is SDE and how is it calculated?

SDE (Seller's Discretionary Earnings) is the total financial benefit a single owner gets from a business, before interest, taxes, depreciation, and amortization. The formula: SDE = Net Profit + Owner Salary + Add-backs (depreciation, personal expenses the buyer won't have, one-time costs, etc.). For example, if your net profit is $150K, you pay yourself $80K, and you have $20K in depreciation — your SDE is $250K. SDE is the most common valuation metric for businesses under $5M in sale price.

What is a fair multiple for my industry?

Multiples vary widely by industry, ranging from 1.5x to 8x SDE depending on the business type. In 2026, typical ranges include: restaurants at 2.0–3.0x SDE, HVAC/plumbing at 2.5–4.0x SDE, medical practices at 3.0–5.5x SDE, veterinary at 3.5–6.0x SDE, IT services at 2.5–5.0x SDE, tech/SaaS at 4.0–8.0x SDE, and self-storage at 3.5–7.0x SDE. Your multiple also adjusts up or down based on growth trend, years in business, and customer concentration.

What is the difference between SDE and EBITDA?

SDE adds back the owner's salary (plus all personal expenses buried in the business), while EBITDA does not. EBITDA is more common for larger businesses ($5M+ revenue). For businesses where the owner is also the primary operator, SDE gives a more accurate picture of what a buyer is purchasing — because the new owner will have to replace the owner's contribution. Our calculator uses SDE, the standard for businesses under $5M in value.

How long does it take to sell a business in 2026?

Most small businesses (under $2M sale price) take 6–9 months from listing to close. Mid-market businesses ($2M–$10M) typically take 9–12 months. The process includes: valuation and preparation (1–2 months), finding a broker or buyer (1–3 months), LOI and due diligence (2–4 months), and closing (1–2 months). Businesses priced correctly with clean financials move fastest. Overpricing by more than 20% can double the time to close.

What fees am I paying when I sell my business?

Total fees typically run 15–25% of the sale price: broker fees (8–12% of sale price), legal fees ($5,000–$25,000), accounting/tax planning ($3,000–$15,000), and due diligence costs ($2,000–$10,000). For a $1M sale, expect roughly $100,000–$130,000 in total fees. SBA loans (available through SmartBiz for qualified buyers) typically require 10% down and can take 60–90 days to close.

Federal Employees — Business Sale + FERS

The Business Sale + FERS Question

If you're a federal employee (FERS) with business ownership, your business sale proceeds are treated completely separately from your pension. Your FERS pension is based on your high-3 salary and years of service — it doesn't decrease when you sell a business.

This creates a powerful planning opportunity: your pension provides a base income floor, while your business sale provides discretionary capital. The integration question is when to sell relative to when you retire from federal service.

Explore Federal Retire Stack →

Key Planning Considerations

Selling before federal retirement doesn't reduce your pension base
Business sale timing affects your income gap analysis (pre vs. post pension)
SBA loans may be available to your buyer — your sale can close faster
Installment sales can spread capital gains across multiple tax years
Business sale proceeds can fund the bridge to your FERS retirement date