Free Small Business Valuation Calculator

This business valuation calculator is designed as a research tool only to provide small business owners with a free and confidential (no personal info required) instant business valuation result that can be used to help determine an approximate asking or sales price when valuing a small business for sale. This business valuation calculator is designed as a self-help research tool for independent uses only. All calculation results are hypothetical and for example purposes only.

This calculator is not intended to provide investment advice, or provide a firm business valuation, or replace an independent business appraisal provided by a qualified and professional valuation expert, Business Appraiser or Business Broker in your market or area. Full Disclaimer

One of the most widely used methods of determining the value of a small business is based on the recasting or adjusting of a business's profit and loss statements to determine the adjusted net cash flow for the business’s owner-operator. This term (Adjusted Net Cash Flow) is also commonly referred to as the “Owners Benefits” or “Seller’s Discretionary Cash Flow”.

Regardless of the term used, the goal of the process is generally the same: To determine or demonstrate the true earning power of the business (for the business’s owner-operator) by adjusting or adding back to the pre-tax net profit the owner’s salary, discretionary expenses, perks, depreciation, and interest expenses.

To get started, please use and enter the following values listed below from your most recent 12 month or year end business income or profit and loss statement. Keep in mind that you should only enter or add back items that have been expensed on the statement.

Enter values from most recent business Profit and Loss (Income) Statement

Enter Value in One of these fields, not both

Enter Net Profit Only if you Realized Profit or Gain:

Enter Net Loss Only if you Realized a Loss:

Owner's Salary Or Compensation:

Enter Owner's Salary (Corporations Only):

Enter Manager's Salary (Absentee Owned Business's Only):

Business Depreciation and Interest Expenses:

Enter Depreciation Expense:

Enter Debt or Loan Interest Expense

Owner's Discretionary Expenses and Perks: (Must be expensed, and paid for by the business)

Enter (total) Personal Insurance Expenses (Health, etc...):

Enter (total) Personal Auto Expenses: (Lease, gas, etc..)

Enter Personal Travel Expenses:

Enter Entertainment Expenses:

Select Most Appropriate Business Category:

Select Years Business Has Been Established: