Locksmith Business Valuation and What a Locksmith Business for Sale Is Worth
Enter the shop's revenue and owner earnings and read a range benchmarked to what locksmith businesses actually closed at, whether you are setting an asking price or checking a listing before you make an offer.
Estimated business value
Method breakdown
What moves this number
Estimate, not a certified appraisal. Your figures are not stored.
US locksmith businesses sold across 2021 to 2025 at a median of 1.99x seller discretionary earnings, or 0.56x annual revenue, with a lower quartile of 1.56x and an upper quartile of 2.68x. The median business sold for $300,000, exactly its median asking price, on median revenue of $550,776 and median owner earnings of $166,567, after a median 115 days on the market.
The median deal finances comfortably. An SBA buyer drawing $80,000 a year can finance about $475,225 on the median earnings, 58.4 percent above the median sale, and at $300,000 the deal sits under the $350,000 line where the SBA requires an independent valuation. Small shops are different: at the lower quartile of earnings the same draw finances only $136,567. This is a benchmark and an estimator, not a certified appraisal.
Locksmith businesses, sale price against asking price
Sold $172,500, asked $196,250
Sold $300,000, asked $300,000
Sold $497,250, asked $526,250
Sold $518,426, asked $540,762
BizBuySell, locksmith businesses sold 2021 to 2025. Light bar asked, dark bar sold. Gaps computed here. The average sits above the upper quartile because a few businesses sold for well over $2 million.
Closed transactions
01What locksmith businesses actually sold for
These are sale prices, not asking prices, from locksmith businesses sold across the five years 2021 to 2025. The source describes them as independently owned businesses serving residential, commercial and automotive customers: installing and repairing locks, lockouts, key duplication, rekeying and key fob programming, with the stronger ones moving into smart locks and digital access. If you have been pricing from a listing site's instant estimate, our comparison of BizBuySell valuation alternatives explains what those tools leave out.
Median sale price
$300,000
What the middle locksmith business actually closed at, 2021 to 2025
Median asking price
$300,000
What the same sold businesses were listed at
Median revenue
$550,776
Annual sales of the middle locksmith business sold
Median owner earnings (SDE)
$166,567
Seller discretionary earnings, a 30.2 percent owner margin
| Locksmith businesses sold, 2021 to 2025 | Lower quartile | Median | Average | Upper quartile |
|---|---|---|---|---|
| Seller discretionary earnings multiple | 1.56x | 1.99x | 2.36x | 2.68x |
| Revenue multiple | 0.41x | 0.56x | 0.70x | 0.88x |
| Revenue | $361,328 | $550,776 | $753,264 | $798,491 |
| Owner earnings (SDE) | $104,877 | $166,567 | $201,691 | $232,090 |
| Sale price | $172,500 | $300,000 | $518,426 | $497,250 |
| Asking price | $196,250 | $300,000 | $540,762 | $526,250 |
Source: BizBuySell locksmith business valuation benchmarks, businesses reported sold on the platform 2021 to 2025, read October 2026. The source publishes no sold count, no yearly breakdown and no multiples for current listings on this page. In the price rows the average sits above the upper quartile, which happens when a few very large sales pull the mean. Benchmarks, not quotes.
Three things stand out. First, the price per dollar of earnings at the middle of the market is low. The median sale over the median earnings is 1.80x, below the published median multiple of 1.99x, and 14th of the 17 service categories BizBuySell compares on that reading. Multiplying medians overshoots: $166,567 at 1.99x is $331,468, 10.5 percent above the median sale, while revenue at the median revenue multiple gives $308,435, only 2.8 percent above.
Second, sellers held their price in the middle. The median sale and the median ask are both $300,000 and the average sale to ask ratio is 0.94, third highest of the 17 categories and tied with property management. The give came at the small end: lower quartile businesses sold 12.1 percent under their lower quartile ask. Third, the spread is wide. BizBuySell says 80 percent of locksmith sales fell between 1x and 4x owner earnings, and between 0.3x and 1.2x revenue.
Each point of owner margin on $550,776 of revenue is $5,508 of earnings, about $10,960 of value at the median multiple, so check the margin the seller presents against three years of returns. If you are working out how to calculate SDE for the shop in front of you, do that first, then find its row in section 05.
Our calculation
02The median locksmith deal finances with room and skips the outside appraisal
Most locksmith businesses at this size go to a working locksmith with an SBA 7(a) loan, or to a nearby locksmith or security company adding customers and vans. What a financed buyer can borrow sets a practical ceiling. The table runs a loan at 10 years, 10.5 percent, 1.25x debt service coverage and a 10 percent injection against the median $166,567 of owner earnings, at each level of salary the buyer takes out. Everything in it is computed here, not quoted.
SBA-supportable price at an $80,000 draw, against the median sale
Scale $0 to $550,000
$136,567
What lower quartile earnings of $104,877 support at the same draw.
$300,000
What the median locksmith business sold for.
$350,000
At or below this price the lender may value the business itself.
$475,225
What $166,567 supports at an $80,000 draw.
| Owner draw the buyer takes | Left for debt service | Supportable purchase price | As a multiple of $166,567 SDE |
|---|---|---|---|
| $0 (buyer takes no salary) | $166,567 | $914,399 | 5.49x |
| $60,000 | $106,567 | $585,019 | 3.51x |
| $80,000 | $86,567 | $475,225 | 2.85x |
| $100,000 | $66,567 | $365,431 | 2.19x |
| $111,919 (the most a buyer can draw at $300,000) | $54,648 | $300,000 | 1.80x |
Computed here. Annual loan constant 0.16192 for a 10 year loan at 10.5 percent, so the supportable price is (SDE minus draw) divided by 1.25, divided by 0.16192, divided by 0.90. Illustrative arithmetic, not a loan offer or a credit decision.
Work it backwards and a financed buyer could take $111,919 a year and still pay exactly the median price, or needs only $134,648 of earnings to pay $300,000 and draw $80,000. The median deal has a second advantage. SBA SOP 50 10 8.1, effective October 1, 2026, lets the lender do its own valuation when the business purchase price is $350,000 or less, unless there is a close relationship between buyer and seller. The median and lower quartile locksmith sales are both under that line; the upper quartile, $497,250, is over it, and there the lender orders a valuation from a qualified source and the debt cannot exceed the appraised value.
Cash to close on the median business
$36,075
A $300,000 purchase at 10 percent down is a $30,000 injection and a $270,000 loan, with a 3 percent SBA guaranty fee of $6,075 on the $202,500 guaranteed portion. Annual debt service is about $43,718, covered 3.81 times by $166,567 of earnings before the owner is paid, leaving $122,849, or $42,849 after an $80,000 salary. Inventory, a van replacement and legal fees come out of that.
The lower quartile business
$136,567
A shop earning $104,877 is worth $163,608 at the lower quartile 1.56x and $208,705 at the median 1.99x. A buyer drawing $80,000 can finance only about $136,567 on those earnings, below both. To pay the 1.56x price the buyer can draw at most about $75,074. A small locksmith business is a job with a loan attached, so price it on the salary it pays you.
What makes locksmith businesses different
03Vans, programmers and a license that stays with the seller
Seller discretionary earnings add depreciation back. A locksmith business earns most of its money from vans stocked with hardware, key blanks, key machines and programming tools, and those wear out or go out of date. The money to replace them comes out of the same earnings that pay the loan, so subtract a yearly reserve before you size the price.
SBA-supportable price at an $80,000 draw, by yearly vehicle and equipment reserve
Computed here on the median $166,567 of earnings. The dark tick is the $300,000 median sale. Each $10,000 of yearly reserve removes $54,897 of supportable price. At about $31,919 a year the loan reaches exactly the median sale.
Set the reserve from the van list
Ask for every vehicle with year, mileage and loan balance, and every key programmer and machine with its age and the software subscription it needs. Price the replacements you will face in the next five years and divide by five. A one-van shop and a five-van commercial company need very different reserves.
Count inventory separately
Locks, door hardware, safes and key blanks sit on shelves and in vans. Agree in the letter of intent whether inventory is in the price or added at cost on the closing date, and count it that day. SBA lenders can finance it, but it raises the loan.
The license is the seller's, not the business's
In California, "no license issued pursuant to this chapter shall be transferred to another person" (Business and Professions Code section 6980.31), so the buyer of a California locksmith company applies for a license in their own name before operating. Texas licenses locksmith companies through the Department of Public Safety under the Private Security Act. Where a state licenses locksmiths, a buyer who is not a licensed locksmith may also need a licensed manager. Check the state and city rules before you sign and set the closing date around the application.
No environmental review triggered by the industry
Locksmiths are NAICS 561622, and that code is not on the list of environmentally sensitive industries in Appendix 6 of SBA SOP 50 10 8.1, so the industry itself does not force a Phase I the way a tow yard, a dry cleaner or an auto repair shop does. The usual rules still apply if commercial real estate is pledged. That keeps a locksmith closing simpler and cheaper than most of the businesses we price.
For a buyer, the first questions on any locksmith listing are how much revenue comes from commercial accounts, who holds the license and how old the vans and programmers are. For a seller, a revenue split by service type, a list of commercial accounts with their history, and a clean equipment list make the price easier to defend. Our guide to business valuation for an SBA loan lists what the lender will ask for.
Sources: California Business and Professions Code sections 6980.31 and 6980.32; Texas Occupations Code chapter 1702; SBA SOP 50 10 8.1, effective October 1, 2026, Appendix 6 and Appendix 15 (changes of ownership and valuation). A summary for pricing, not legal advice.
Our calculation
04What the business is worth once the owner stops running calls
Seller discretionary earnings include the owner's pay, and in most locksmith businesses the owner is a working locksmith. An investor buyer has to pay someone to do that work. The rows below replace the owner's labor with locksmiths hired at the Bureau of Labor Statistics national median wage for May 2025, plus employer FICA.
The same $300,000 price
1.80x
to an owner who runs calls
2.69x
with one locksmith hired
5.35x
with two locksmiths hired
| Who does the owner work | Earnings left | Price as a multiple | SBA, no draw | SBA, $80,000 draw |
|---|---|---|---|---|
| Owner runs the calls, no hire | $166,567 | 1.80x | $914,399 | $475,225 |
| One locksmith hired ($55,246) | $111,321 | 2.69x | $611,117 | $171,942 |
| Two locksmiths hired ($110,492) | $56,075 | 5.35x | $307,834 | Not at this draw |
Computed here. BLS Occupational Employment and Wage Statistics, national estimates for May 2025: locksmiths and safe repairers (SOC 49-9094), median $51,320 a year, 15,040 jobs. Plus 7.65 percent employer FICA. On-call pay for after-hours lockouts usually pushes the real cost higher.
To a locksmith who will run the calls the way the seller did, $300,000 is 1.80x earnings, under the median multiple. With one locksmith hired at the median wage it is 2.69x, right at the upper quartile, and the loan still reaches $171,942 at an $80,000 draw, so an investor needs more equity or a seller note. With two hires the business no longer pays the buyer a salary at all. That is why the buyer who can pay the most is usually another locksmith or a security company nearby, who adds the accounts and the van to an existing dispatch without hiring a second manager.
Find your row
05What a locksmith business at your earnings is worth
Each row takes an earnings level from the sold record and prices it at the lower quartile, median and upper quartile multiple, next to what an SBA buyer drawing $80,000 a year could finance before any vehicle reserve.
| Owner earnings (SDE) | At 1.56x | At 1.99x | At 2.68x | SBA-supportable, $80,000 draw |
|---|---|---|---|---|
| $104,877 (lower quartile sold) | $163,608 | $208,705 | $281,070 | $136,567 |
| $134,648 (what $300,000 needs at an $80,000 draw) | $210,051 | $267,950 | $360,857 | $300,000 |
| $166,567 (median sold) | $259,845 | $331,468 | $446,400 | $475,225 |
| $201,691 (average sold) | $314,638 | $401,365 | $540,532 | $668,045 |
| $232,090 (upper quartile sold) | $362,060 | $461,859 | $622,001 | $834,925 |
Computed here. SBA column on the same terms as section 02, before any vehicle reserve. Illustrative arithmetic, not a loan offer.
The financing line crosses the price line between the second and third rows. At lower quartile earnings the loan does not reach even the 1.56x price at an $80,000 draw; at $134,648 it reaches the median sale but not the median multiple price; from the median earnings up it reaches beyond the upper quartile price. So for small shops the price is set by what the buyer can live on, and for larger ones by the market. If your numbers sit between rows, the estimator at the top of the page will place them.
Value drivers
06What moves a locksmith business between the quartiles
The distance between the lower and upper quartile multiple is 1.56x to 2.68x, which on $166,567 of earnings is the difference between $259,845 and $446,400. The scale below shows where the published readings fall inside the band that holds 80 percent of all sales.
Locksmith earnings multiples on one scale
0x to 4.5x seller discretionary earnings
1.56x
Lower quartile
1.80x
Median sale over median SDE
1.99x
Median multiple
2.36x
Average multiple
2.68x
Upper quartile
BizBuySell locksmith benchmarks, 2021 to 2025. Light band, 1x to 4x, holds 80 percent of sales; dark band, 1.56x to 2.68x, the middle half. The 1.80x reading (median sale over median earnings) is computed here.
Service mix
Residential lockouts and rekeys, automotive keys and fobs, and commercial work pay very differently. Commercial master key systems, door hardware and access control bring larger tickets and repeat customers; residential lockout work depends on advertising and the owner being on call. Ask for three years of revenue by service type and by customer, and price each line on whether it stays after the sale.
Sales volume
BizBuySell states that a commercial locksmith company with annual sales of $800,000 may sell for an earnings multiple approaching 3, while a smaller local locksmith with sales below $365,000 may trade closer to 1.5 times owner earnings. Those thresholds sit on the sold revenue quartiles of $361,328 and $798,491.
The license does not come with the business in some states
California says plainly that no license issued under its locksmith law shall be transferred to another person (Business and Professions Code section 6980.31), so a new owner applies for a locksmith company license of their own. Texas licenses locksmith companies through the Department of Public Safety under the Private Security Act. Check the rules in your state, and the city, before you sign, and build the licensing time into the closing date.
Key codes, records and keyed systems
A locksmith business holds customer records, master key charts and key codes for buildings it services. Those records are a large part of what a commercial buyer pays for, and they are sensitive. Confirm what records exist, who controls them, and how they move to the new owner, and keep them in the purchase agreement.
Vans and programming equipment
Most locksmith revenue is earned from a vehicle. Ask for every van with year, mileage and loan balance, and list the key programmers and software subscriptions that come with it. Automotive key work in particular depends on current programming tools and the subscriptions behind them.
The owner as the technician
In a shop at the lower quartile of earnings, the owner usually is the locksmith. The customers know their name, and the skill does not transfer with the keys. A transition period with the seller working alongside you, and introductions to every commercial account, protect the revenue you are paying for.
Against other service businesses
07Locksmith businesses against 16 other service businesses
Locksmiths sit 12th of 17 service categories on average earnings multiple, 2.36x, toward the lower end of the main street service range, as BizBuySell itself notes. The owner margin of 30.2 percent is 10th. The closest comparison is pest control: a locksmith business earns 34.1 percent more at the median and sells for 20.5 percent more, yet pest control carries the slightly higher average multiple, 2.40x, which BizBuySell puts down to its subscription revenue. Security companies, often the buyer of a commercial locksmith, earn 45.1 percent more and sell for 2.5 times the price. Our pest control business valuation and cleaning business valuation pages price two of the neighbors, and SDE multiples by industry shows the whole market.
| Service category | Median revenue | Average revenue multiple | Median SDE | Average SDE multiple | Owner margin | Median sale | Median ask | Sale to ask |
|---|---|---|---|---|---|---|---|---|
| Funeral homes and mortuaries | $750,000 | 1.67x | $318,000 | 4.28x | 42.4% | $1,500,000 | $1,800,000 | 0.85 |
| Laundromats | $219,878 | 1.33x | $76,560 | 3.65x | 34.8% | $250,000 | $275,000 | 0.92 |
| Medical billing | $614,000 | 1.24x | $180,000 | 3.63x | 29.3% | $500,000 | $599,000 | 1.01 |
| Waste management and recycling | $710,000 | 0.95x | $176,635 | 3.31x | 24.9% | $525,000 | $625,000 | 0.91 |
| Commercial laundry | $198,000 | 1.25x | $112,000 | 2.83x | 56.6% | $250,000 | $269,000 | 0.92 |
| Staffing agencies | $1,306,129 | 0.65x | $301,147 | 2.74x | 23.1% | $670,000 | $725,000 | 0.90 |
| Security businesses | $862,943 | 0.85x | $241,687 | 2.73x | 28.0% | $750,000 | $750,000 | 0.89 |
| Property management | $565,658 | 0.93x | $167,000 | 2.70x | 29.5% | $397,500 | $425,000 | 0.94 |
| All service businesses | $455,000 | 0.86x | $146,927 | 2.62x | 32.3% | $325,000 | $350,000 | 0.92 |
| Architecture and engineering | $1,090,000 | 0.74x | $332,171 | 2.59x | 30.5% | $742,000 | $800,000 | 0.90 |
| Landscaping and yard service | $708,412 | 0.70x | $187,761 | 2.46x | 26.5% | $425,000 | $450,000 | 0.93 |
| Pest control | $263,597 | 0.99x | $124,184 | 2.40x | 47.1% | $249,000 | $277,000 | 0.91 |
| Locksmith businesses | $550,776 | 0.70x | $166,567 | 2.36x | 30.2% | $300,000 | $300,000 | 0.94 |
| Cleaning and janitorial | $433,327 | 0.70x | $136,326 | 2.19x | 31.5% | $260,000 | $295,000 | 0.92 |
| Dry cleaners | $360,000 | 0.76x | $132,513 | 2.09x | 36.8% | $250,000 | $275,000 | 0.93 |
| Catering | $931,891 | 0.44x | $212,204 | 2.00x | 22.8% | $332,500 | $442,500 | 0.87 |
| Law firms | $921,000 | 0.72x | $281,411 | 1.96x | 30.6% | $500,000 | $575,000 | 0.90 |
| Service and delivery routes | $322,910 | 0.62x | $102,050 | 1.78x | 31.6% | $120,000 | $125,000 | 0.98 |
Source: BizBuySell service sector comparison, 2021 to 2025, as published on the locksmith business page. Owner margin (median SDE over median revenue) computed here. Ordered by average SDE multiple, with the all-service row in its place.
Methods
08The five ways a locksmith business gets valued
You will meet most of them in one sale. A lender counts earnings after the owner's salary, a buyer from the security industry counts recurring commercial accounts, and the seller usually counts the vans and the inventory. Knowing which one the other side is using is most of the negotiation.
Seller discretionary earnings multiple
The primary method for an owner-run locksmith shop and the one an SBA lender underwrites. Normalized SDE times a multiple, where half of all sales landed between 1.56x and 2.68x. Normalize first: a spouse on payroll, a personal vehicle run through the books, cash key-cutting sales that never reached the deposit account, and one-time costs such as a new key programmer all need to be sorted out before the multiple means anything.
Revenue multiple
Locksmith businesses sold at a median 0.56x revenue and an average of 0.70x. Use it as a cross-check only. A walk-in shop that cuts keys and a commercial company that installs and services access control can bill the same and keep very different shares of it.
EBITDA multiple
Once a manager runs dispatch and technicians do the calls, buyers count EBITDA after a market wage for every role. Security integrators and larger commercial operators price this way, and the multiple they quote is not comparable with an SDE multiple on a main street sale.
Asset value of vans, inventory and equipment
Service vans, key machines, transponder and key fob programmers, lock and key blank inventory and any safe-servicing tools set a floor under the price. Count inventory at closing at cost and agree in the letter of intent whether it is inside the price or added on top.
Recurring account value
Not a separate method, but the step that moves a locksmith business up the range. Master key systems, property management and school accounts, and access control service contracts bring repeat work that does not depend on the owner answering a lockout call at 2 a.m. Price that revenue separately from one-off residential and automotive calls.
Questions
Locksmith business valuation questions, answered against the sold record
How much is a locksmith business worth?
The median US locksmith business sold between 2021 and 2025 went for $300,000, on median revenue of $550,776 and median owner earnings of $166,567. Half of all sales landed between 1.56x and 2.68x owner earnings, which on $166,567 is $259,845 to $446,400. Service mix, size and how much the business depends on the owner decide where it lands.
How do you value a locksmith business?
Start from normalized seller discretionary earnings, the profit plus the owner pay and one-time costs. Apply a multiple between about 1.56x and 2.68x, higher for larger companies with commercial accounts and access control work. Check the result against revenue, at 0.41x to 0.88x, against the vans, equipment and inventory, and against what an SBA lender will finance.
What is the multiple for a locksmith business?
Locksmith businesses sold at a median 1.99 times seller discretionary earnings and an average of 2.36x across 2021 to 2025, with a lower quartile of 1.56x and an upper quartile of 2.68x. On revenue the median was 0.56x and the average 0.70x. Eighty percent of sales fell between 1x and 4x earnings.
How much does a locksmith business make?
The median locksmith business sold between 2021 and 2025 made $550,776 in revenue and $166,567 in owner earnings, a 30.2 percent owner margin. The lower quartile earned $104,877 on $361,328 of revenue, and the upper quartile $232,090 on $798,491. Those earnings include the pay of an owner who usually works in the business.
Is a locksmith business profitable?
On the sold record, yes. The median owner margin of 30.2 percent sits close to the 32.3 percent median for all service businesses, and the median company returned about 55.5 percent of its sale price in owner earnings a year. BizBuySell notes that locksmith businesses tend to have strong profit margins, which keeps them a desirable acquisition target.
How much does it cost to buy a locksmith business?
The median locksmith business sold for $300,000. Financed with an SBA 7(a) loan at 10 percent down, that is a $30,000 injection plus a $6,075 guaranty fee, about $36,075 of cash at closing. Smaller shops at the lower quartile sold for $172,500, and the upper quartile for $497,250.
Can you get an SBA loan to buy a locksmith business?
Usually, yes. At 10 years, 10.5 percent, 1.25x coverage and 10 percent down, the median $166,567 of owner earnings supports about $475,225 if the buyer draws $80,000 a year, 58.4 percent above the median sale. At the lower quartile of earnings the same draw supports only $136,567, so small shops finance only for a buyer who takes less.
How long does it take to sell a locksmith business?
BizBuySell reports a median of 115 days on the market for locksmith businesses that sold, a little under four months from listing to an accepted deal. That is quick by main street standards. Lender review, licensing for the new owner and the handover of commercial accounts usually add one to three months before closing.
How much does a business valuation cost for a locksmith business?
A formal valuation commonly runs $1,500 to $8,000 for a calculation engagement and $5,000 to $15,000 for a full conclusion of value, which is 0.5 to 2.67 percent and 1.67 to 5.0 percent of a $300,000 sale. Under current SBA rules, a lender financing a purchase at or below $350,000 may do its own valuation instead.
Asked another way
What locksmith owners and buyers ask when they are deciding
These come up once the numbers are understood and the decision is the real problem, whether that is making an offer, buying without a license of your own or choosing between buying and starting. Answered against the same sold record.
Is a locksmith business listed at 3 times earnings a fair price?
Usually not, unless it is a larger commercial company. Sold locksmith businesses traded at a median 1.99x and an upper quartile of 2.68x, and BizBuySell ties a multiple approaching 3 to companies with about $800,000 of sales. A 3x asking price on a shop doing $400,000 needs recurring commercial accounts or equipment worth a real part of the price to hold up.
Can I buy a locksmith business without being a locksmith?
Yes, but plan to hire, and check your state license first. On the median business, replacing the owner with one locksmith at the national median wage takes earnings to $111,321 and makes a $300,000 price 2.69x. Some states license the company and require a licensed person in charge, so an investor buyer may need a qualified manager on day one.
Is buying a locksmith business a good investment?
For a working locksmith or a security company adding territory, the numbers are good. The median business sold for $300,000, about 1.80 times its earnings, and the median deal finances with room to spare. The risks are dependence on the owner, residential work that comes from paid advertising, and licenses that do not transfer.
Should I buy a locksmith business or start one?
Buy if you want revenue on day one and the business has commercial accounts you could not win quickly yourself. Start if the business for sale is mostly residential lockout work bought through advertising, because you are paying for leads you could buy too. Price the accounts, not the phone number.
Do I need a formal appraisal or is an estimate enough?
An estimate is enough to set an asking range or decide whether a listing deserves an offer. Under SBA rules effective October 1, 2026, a lender may do its own valuation when the purchase price is $350,000 or less, which covers the median locksmith sale. Above that line the lender orders an independent valuation from a qualified source.
Benchmarks behind the estimate
Find out where in the range a locksmith business sits
Enter revenue and owner earnings, for your own shop or for a listing you are considering, and read a value range against real locksmith business sales. An estimate in a few minutes, before you pay a broker or an appraiser.