Business Valuation Calculator

What is my business worth? Similar to other investments the value of a business is linked to its ability to produce future profits. As a business owner you probably ask yourself this all the time. Some people are just curious what their business is worth, some need a formal valuation and some people are considering selling their business. Whatever the reason our calculator will help you do that.

Annual earnings before interest, taxes, depreciation, and amortization ($)

"Excess compensation" paid to owners (if any) ($)

Anticipated rate of earnings/compensation growth (0 if level) (0% to 100%)

Number of years earnings are expected to continue
(maximum 10 which assumes perpetuity) (0 to 10)

Level of business/industry/financial risk
(Typically restaurants and retail are lower risk than manufacturing and high tech)

Discount for lack of marketability (-100% to 100%)

What is a Business Value Calculator?

Use our Business Value Calculator to get a quick and easy estimate of your business's market value. Just enter your financial details like annual revenue, owner compensation, and growth rate to get started.

Whether you’re planning to sell or just want a clearer picture of your business’s financial health, this tool is perfect for small business owners looking for insights. Try our online business calculator now and see what your business might be worth!

How Do I Use a Business Value Calculator?

It's easy to use this small business calculator. Just enter your business's financial data, like annual earnings and growth projections. You can also add any risks your business might face. The calculator, which can be accessed online or even recreated in Excel, processes this data to provide an estimated valuation. This is very useful for small business owners in Canada who want to know their business's market value.

Explanation of Inputs

Annual Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ($): The profit your business makes each year before accounting for interest, taxes, and depreciation. It shows your core business profitability.
"Excess Compensation" Paid to Owners ($): Extra money the business pays to owners beyond a normal salary, used to adjust the valuation if owners are overpaid.
Anticipated Rate of Earnings/Compensation Growth (%): The expected percentage increase in your business’s profits or owner compensation each year.
Number of Years Earnings Are Expected to Continue: The number of years you expect your business to keep earning profits, up to 10 years.
Level of Business/Industry/Financial Risk: Indicates how risky your business is. Lower risk typically means a higher value, while higher risk may lower it.
Discount for Lack of Marketability (%): The percentage reduction in value due to the difficulty in selling the business.

Data Accuracy

The accuracy of the business value calculator depends on the data you provide. For the best results, use current and accurate financial information. Even though the calculator gives a good estimate, getting a detailed analysis from a financial expert is a good idea.

Need Help Making Business Decisions?

Explore our comprehensive suite of Business Calculators designed to assist you with key financial decisions. Whether you’re evaluating the value of your business, planning for growth, or calculating expenses, we have the right tool for you.

Still calculating your startup costs? Use our Startup Costs Calculator to get a comprehensive overview of what you need to get started.
Wondering how your equipment decisions might impact your overall business value? Try our Lease or Buy Equipment Calculator for insights.
Curious about how many units you need to sell to break even? Use our Break-Even Calculator to determine your break-even point.
Considering a real estate investment? See how it might contribute to your business's overall value with our Return on Real Estate Investment Calculator.

Why this Marketplace was Created

Frustrated by the timely process of searching for businesses and commercial properties on the market, the founders at Businesses 4 Sale created a platform to transform the business/commercial property buying and selling experience. The database compiles the most relevant information from multiple industry sources, making it easy for future business/commercial property owners and sellers to find exactly what they are looking for.