Comprehensive Guide
Learn more in our Business & Tax Guide.
How it works
business valuation calculator takes your inputs and produces revenue-based value, ebitda-based value, asset-based value, average estimate. Estimate your business value using three methods — earnings multiple, DCF, and asset-based — to find a realistic range. You provide 5 inputs: Annual revenue (currency, in dollars) (default: 1000000 dollars); Annual EBITDA (currency, in dollars) (default: 200000 dollars); Industry revenue multiple (number) (default: 2.5); Industry EBITDA multiple (number) (default: 5); Total assets (currency, in dollars) (default: 500000 dollars). The calculator returns 4 outputs: Revenue-based value (the primary result); EBITDA-based value (a secondary output); Asset-based value (a secondary output); Average estimate (a secondary output). Business tax and finance calculations combine multiple moving parts — revenue, expenses, depreciation, tax brackets, and timing — in ways that make back-of-envelope estimates unreliable. This calculator handles the interaction of those variables precisely, so your business decisions rest on real arithmetic. The underlying formula: Revenue value = Revenue × Industry revenue multiple | EBITDA value = EBITDA × Industry EBITDA multiple | Asset value = Total assets (adjusted for market value) With the default values, revenue-based value is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Formula
Revenue value = Revenue × Industry revenue multiple | EBITDA value = EBITDA × Industry EBITDA multiple | Asset value = Total assets (adjusted for market value)
Tips
- EBITDA multiple is the most commonly used valuation method for established businesses.
- Revenue-based valuation is better for high-growth businesses where profit is reinvested.
- Asset-based valuation is the floor — a buyer will never pay less than the asset value.
- Improve valuation by: growing revenue, improving margins, reducing customer concentration, documenting processes.
Frequently asked questions
What is my business worth?
The most common method: multiply EBITDA by an industry multiple. A business with $200K EBITDA in a market where multiples are 5x is worth approximately $1M. But valuation depends on growth rate, margins, customer concentration, and market conditions — it is a range, not a number.
How do I increase my business valuation?
Four levers: grow revenue, improve profit margins, reduce customer concentration (no single customer > 20% of revenue), and document systems and processes. Each 1-point improvement in EBITDA margin adds significant value at the exit multiple.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.