Business Valuation Calculator
Estimate business value using revenue multiples, earnings multiples, and asset-based methods.
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How to use this calculator
Revenue multiples are applied to annual revenue based on industry norms. EBITDA multiples are applied to earnings before interest, tax, depreciation, and amortisation. The midpoint averages the low and high ends of both methods.
- 1
Enter your annual revenue, EBITDA, and net asset book value.
- 2
Select your industry to apply the appropriate revenue and EBITDA multiples.
- 3
Read the valuation ranges from both methods and the blended midpoint estimate.
Frequently asked questions
How is the midpoint valuation calculated?
This tool uses revenue × a low and a high revenue multiple, and EBITDA × a low and a high EBITDA multiple, then averages the four results with equal weight. For $500,000 of revenue and $100,000 of EBITDA in the services setting, the revenue range is 500,000 to 1,500,000, the EBITDA range 300,000 to 500,000 and the midpoint 700,000.
Where do the multiples come from?
They are the figures built into this tool for each industry choice, shown in the table on this page. They are fixed starting assumptions and not market data, and the tool does not update them. Real transactions vary with growth, risk, contracts and buyer, so the output is a rough estimate that depends on judgement.
What happens when EBITDA is zero or negative?
The EBITDA-based range shows as not applicable, and the midpoint uses the revenue range only. With $800,000 of revenue, −$50,000 of EBITDA and the retail setting, the midpoint is 600,000 (the average of 400,000 and 800,000). Multiplying a loss by a positive multiple would otherwise drag the estimate down in a way that makes no sense.
Is net asset value part of the estimate?
No. The net assets figure is shown on its own line but does not feed the midpoint. Use it as a reference point beside the two multiple-based ranges, for example to see whether the estimate sits above or below book value.
What does the EBITDA margin line show?
It is EBITDA ÷ annual revenue × 100, to one decimal place. The default inputs give 20.0%. If revenue is zero the margin shows 0.0%, and a negative EBITDA gives a negative margin, such as −6.3% for the $800,000 and −$50,000 example.
Do the dropdown labels match the multiples used?
Yes. Each dropdown label lists both the revenue multiple range and the EBITDA multiple range the code applies, so for SaaS it reads 4–10× revenue and 10–20× EBITDA. Negative revenue is treated as zero. Results are plain numbers without a currency symbol, so read them in the currency you entered.
Is this a formal valuation or advice?
No. It is a planning estimate from simple multiples and gives no investment advice. It ignores debt, cash, owner pay, customer concentration, contracts and growth. Anyone buying, selling or raising money should get a professional valuation and advice from a qualified adviser.
Business valuation calculator: revenue and EBITDA multiple ranges
How the estimate is built
The calculator applies two multiple ranges to your figures. Annual revenue is multiplied by a low and a high revenue multiple, and annual EBITDA by a low and a high EBITDA multiple. The midpoint is the plain average of the four products. Net assets are displayed for reference but are not used in the midpoint, and the multiples depend only on the industry you choose.
| Industry | Revenue multiple | EBITDA multiple |
|---|---|---|
| Services | 1–3× | 3–5× |
| SaaS / Tech | 4–10× | 10–20× |
| Retail | 0.5–1× | 3–6× |
| Manufacturing | 1–3× | 3–6× |
| Professional services | 2–4× | 4–8× |
Examples from the calculator
The first case uses the default inputs. The second is a SaaS business with a 20% EBITDA margin, and the third is a loss-making retailer, which shows how the tool handles negative EBITDA. All numbers are the calculator’s output.
| Inputs | Revenue-based range | EBITDA-based range | Midpoint |
|---|---|---|---|
| Services · revenue 500,000 · EBITDA 100,000 | 500,000 – 1,500,000 | 300,000 – 500,000 | 700,000 |
| SaaS · revenue 2,000,000 · EBITDA 400,000 | 8,000,000 – 20,000,000 | 4,000,000 – 8,000,000 | 10,000,000 |
| Retail · revenue 800,000 · EBITDA −50,000 | 400,000 – 800,000 | Not applicable | 600,000 |
Why the two ranges can be far apart
In the SaaS example the revenue-based range is twice as wide as the EBITDA-based range and sits higher, because a 4× to 10× revenue multiple is much more generous than 10× to 20× applied to a smaller earnings figure. When the two ranges disagree this strongly, it usually means the answer depends on which measure a buyer cares about, so look at both ranges and not just the midpoint.
What the numbers leave out
A multiple is a shortcut. It does not see debt, cash on hand, the owner’s salary, the quality of contracts, how much the business relies on one customer or person, or what a particular buyer would gain. The same revenue can be worth very different amounts to different buyers, which is why the calculator shows ranges rather than a single answer.
Using the result sensibly
Treat the midpoint as a conversation starter and a way to test how sensitive the number is. Change EBITDA by ten percent and see how the range moves. Before any real decision about selling, buying or raising money, get a professional valuation and independent advice. The tool gives a rough estimate that depends on judgement, so it should not be used as a price in a negotiation or as a basis for investing.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →