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Business Valuation Calculator
Get an estimated valuation range for your small business in minutes, using a method built for owner operators.
No signup requiredIndustry specific rangeSaved in your browser
ESTIMATE YOUR RANGE
Start with one typical year.
Use gross sales before subtracting expenses. This estimate is scoped to revenue under $1 million.
Enter profit after owner pay and other expenses were deducted. A loss can be entered with a minus sign.
Include only documented amounts that were already deducted from profit and that a buyer may not continue.
Midpoint benchmark source: BizBuySell industry valuation multiples. Novo low, high, growth, and business age adjustments are illustrative.
This calculator is educational and does not verify your inputs. Only include add backs that are documented and would not be required under new ownership.
Valuation assistant
Ask about seller discretionary earnings, add backs, multiples, or preparing your records.
ESTIMATED VALUATION
Service business
Estimated range$0 to $0Complete revenue, profit, and add backs to see a range
- Annual revenue
- $0
- Annual profit
- $0
- Owner add backs
- $0
- Seller discretionary earnings
- $0
Low2.20x
Mid2.61x
High3.00x
What moved your range
Service businesses averaged 2.61 times owner earnings.
Steady revenue leaves the industry benchmark unchanged.
Your next stepI am curious
Track the same inputs every quarter to see whether owner earnings and your estimated range are moving together.
Industry midpoint benchmarks use reported private business sales from Q3 2021 through Q2 2026. Low, high, growth, and business age adjustments are illustrative Novo estimates. Review the source data. This is a directional estimate, not a certified appraisal, offer, or guarantee of sale price.
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Beyond the formula
What affects your business value?
A multiple is only a starting point. Buyers also look at how repeatable, transferable, and well documented the earnings are.
Profitability
Higher owner earnings generally increase value because the estimate applies an earnings multiple.
Owner independence
Documented systems and a capable team can reduce the risk that customers leave with the owner.
Customer quality
Recurring revenue and a diverse customer base may be more durable than one large relationship.
Three common approaches
Business valuation methods explained.
Seller discretionary earnings
Adds legitimate owner benefits and discretionary expenses back to profit, then applies a market multiple. It is common for owner operated businesses.
Revenue multiple
Applies a multiple to sales. It can help compare similar businesses, but it does not show whether those sales are profitable.
Asset or income approach
Values assets and liabilities or future cash flow. These methods may fit asset heavy businesses, disputes, taxes, or formal transactions.
A valuation starts with clean books
Make the numbers easier to prove.
Novo Bookkeeping categorizes transactions and keeps your profit and loss reporting current, so the financial history behind a valuation is easier to organize.
- Automatic expense categorization
- Profit and loss reporting
- External account transaction syncing
Need your starting numbers?Build a free profit and loss statement first.
Open the P&L builderBusiness valuation questions
Seller discretionary earnings starts with profit and adds back eligible owner compensation, personal benefits, and certain one time expenses. Every add back should be supported by clear records and may be challenged by a buyer.
There is no single correct multiple. Industry, location, business size, growth, customer concentration, owner dependency, and the quality of financial records can all affect the result. Recent comparable sales are more useful than a broad average.
A range reflects the uncertainty in any quick estimate. A buyer or appraiser may apply a different multiple after reviewing comparable sales, contracts, assets, liabilities, market conditions, and operating risk.
Use it as an early planning benchmark, not as an asking price or certified appraisal. A broker, accountant, attorney, or qualified appraiser can help prepare records and select a method for an actual transaction.
No. The estimate is based only on seller discretionary earnings and the selected multiple. Inventory, cash, debt, real estate, and other assets or liabilities may be handled separately in a transaction.
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