SDE Multiple Calculator for Owner-Operated Small Businesses
Businessappraisal estimates value for owner-operated businesses using seller discretionary earnings, or SDE, which adds the owner salary and perks back to profit. You enter your numbers and it returns a range, so a main-street business can be valued the way buyers and brokers actually price it.
Last updated July 2026
Estimated business value
Method breakdown
What moves this number
Estimate, not a certified appraisal. Your figures are not stored.
In short
An SDE multiple calculator estimates the worth of an owner-operated business by applying a market multiple to its seller discretionary earnings, which is profit plus the owner salary, benefits, and one-time costs added back. Businessappraisal computes your SDE and applies an industry multiple, so many small businesses estimate in the 2x to 4x SDE range depending on sector and stability. It returns a low-to-high range with the SDE and multiple it used, not a single promised price. This is an educational estimate to help you plan, not a certified appraisal or financial advice.
What you get
SDE multiple, for founders, buyers, and sellers
Built for owner-run businesses
SDE adds the owner salary and personal add-backs back to profit, which is how buyers value a business one person effectively runs.
Clear add-back logic
Businessappraisal shows each add-back it applied, from owner compensation to one-time expenses, so your SDE is easy to check.
Anchored to broker ranges
Many small businesses estimate near 2x to 4x SDE, so your figure sits against how comparable listings are typically priced.
Transparent range
You get a low-to-high estimate with the SDE and multiple shown, keeping the result honest and defensible.
How it works
From your numbers to a value range in four steps
Enter your financials
Provide profit, owner salary, benefits, and one-time costs so Businessappraisal can build your seller discretionary earnings.
AI applies the multiple
It selects an SDE multiple from comparable small-business sales and applies it to your calculated SDE.
Get the value range
You receive a low-to-high estimate showing your SDE and the multiple, framed as an educational estimate.
Understand the drivers
See how owner dependence, margins, and industry moved the multiple so you know what raises or lowers the estimate.
Questions
SDE multiple questions people ask
What is SDE in business valuation?
Seller discretionary earnings is the total financial benefit one working owner takes from a business: net profit plus owner salary, benefits, personal expenses run through the company, interest, taxes, depreciation, and one-time costs. It is the standard earnings measure for valuing owner-operated businesses, because it shows what a new owner-operator would actually earn.
What is a typical SDE multiple for a small business?
Most owner-operated small businesses sell for 2x to 4x SDE, with the middle of the market around 2.5x to 3x. Stable earnings, recurring customers, and a business that runs without the owner push toward the top of the band; heavy owner dependence or customer concentration pulls it down.
What is the difference between SDE and EBITDA?
SDE adds the full owner salary back to earnings; EBITDA keeps a market-rate manager salary in the costs. SDE fits businesses one owner effectively runs, EBITDA fits businesses with a management team. The practical line: under roughly $1M in earnings buyers quote SDE multiples, above $2M to $3M they quote EBITDA multiples.
How do I calculate my SDE?
Start with net profit, then add back your salary and payroll taxes, personal expenses the business pays, interest, taxes, depreciation, amortization, and true one-time costs. Document every add-back, because buyers will test each one. The result is the earnings figure a broker or buyer will multiply to price the business.
More valuation methods
Businessappraisal provides an educational estimate for informational purposes only. It is not a certified appraisal or financial advice. For a formal valuation, consult a credentialed appraiser.
See what your business is worth
Enter your numbers and get an estimate from three methods in minutes, benchmarked against comparable sales, with the drivers explained.