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Calcimator

Business Asset Appraisal Calculator

Estimate business value using asset-based, earnings-based, and revenue-based approaches with goodwill.

Inputs

$
$
$
$
%

Results

Estimated Business Value

$372,500.00

≈ 9 Teslas

Book Value (Assets)$200,000.00
Earnings-Based Value$300,000.00
Revenue-Based Value$450,000.00
Goodwill$60,000.00
Revenue Multiple0.75
Earnings Multiple3.73
How to Use This Calculator
  1. Enter Annual Revenue and Annual Earnings (SDE — seller's discretionary earnings).
  2. Input Total Assets and Total Liabilities to calculate book value.
  3. Set Industry Multiple — the typical SDE multiple for your business sector (e.g. 2–4x for service businesses).
  4. Set Goodwill Factor % — the premium above asset value from brand, customer relationships, and processes.
  5. Review Estimated Business Value alongside Earnings-Based and Revenue-Based values for comparison.
  6. Use Book Value as a floor — a healthy business should be worth more than its liquidation value.

How the result changes with Industry Multiple

Industry MultipleEstimated Business Value
1.95$259,625.00
5.57$648,775.00
9.93$1,117,475.00
14$1,555,000.00

What each input means

Annual Earnings (SDE)
Seller's discretionary earnings.
Industry Multiple
Typical SDE multiple for the industry.
Goodwill Factor
Goodwill as % of earnings value.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Annual Revenue = 500000, Annual Earnings (SDE) = 100000, Total Assets = 300000, Total Liabilities = 100000 = 6 input(s) provided
  2. Calculate Estimated Business Value
    Estimated Business Value = weightedValue + goodwill
    372500 = $372,500
  3. Calculate Book Value
    Book Value = totalAssets - totalLiabilities
    200000 = $200,000
  4. Calculate Earnings-Based Value
    Earnings-Based Value = annualEarnings * industryMultiple
    300000 = $300,000

Engine last updated . Checked against 2 independently-derived tests how we verify calculators.

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