Business Valuation Calculator

Estimate business value using revenue multiples, EBITDA multiples, and asset-based methods.

About This Calculator

Estimate business value using revenue multiples, EBITDA multiples, and asset-based methods. Use the calculator above for instant results.

Worked Examples

Example 1: SaaS: $1M revenue, $200K EBITDA

  • Revenue multiple (4-8x): $4M-$8M
  • EBITDA multiple (10-20x): $2M-$4M | Combined: $3M-$6M

Answer: $3M-$6M estimated

Example 2: Service firm: $500K revenue, $100K EBITDA

  • Revenue (1-2x): $500K-$1M | EBITDA (5-8x): $500K-$800K

Answer: $500K-$900K

Example 3: eCommerce: $2M revenue, $300K EBITDA

  • Revenue (0.5-1.5x): $1M-$3M | EBITDA (4-7x): $1.2M-$2.1M

Answer: $1.1M-$2.6M

Who Uses This Calculator?

💼
Business Owners

Understand what your business might be worth.

💰
Buyers

Evaluate acquisition targets.

🏦
Lenders

Assess collateral value.

📊
Investors

Screen investment opportunities.

Common Mistakes to Avoid

❌ Multiples are just starting points

Actual valuation depends on growth rate, market conditions, customer concentration, recurring revenue, and deal specifics.

❌ Revenue multiple only for high-growth

Revenue multiples (vs EBITDA) are used for high-growth companies. Profitable businesses are more commonly valued on EBITDA.

Frequently Asked Questions

SaaS valuation multiples?

Historically 5-15x ARR for high-growth. Post-2022 correction: 3-8x ARR. Profitable, growing SaaS with NRR > 120% commands premium.

How are businesses sold?

Through business brokers (small businesses), M&A advisors (mid-market), or investment banks (large). Brokers typically charge 10% of sale price.

EBITDA vs earnings?

EBITDA: earnings before interest, tax, depreciation, amortization. Removes financing and accounting differences for comparison.