Business Value Calculator

How Much Is My Business Worth?

How much is your business worth? Our free business value calculator helps Illinois, Indiana and Wisconsin business owners get a quick, no-obligation estimate of their company's value range before talking to a broker. Enter a few numbers from your financials and answer a handful of quick questions about your business to see an estimated value range instantly.

1. Enter your financials. Revenue, cost of goods sold, and operating expenses for your most recent full year.
2. Add back owner and one-time expenses. This gets you to Seller's Discretionary Earnings (SDE) — the true cash flow a new owner could expect.
3. Answer a few quick questions. Industry, growth trend, and risk factors adjust the multiple applied to your SDE.
4. Enter your contact info and get your estimated value range. Instantly, right on this page.

Step 1: Annual Financials

Use your most recent full fiscal year. Whole dollars, no commas needed.

Annual Revenue (Sales)

Cost of Goods Sold

Operating Expenses

Step 2: Add-Backs (Seller's Discretionary Earnings)

Expenses that are personal to ownership, non-cash, or one-time — these get added back to Net Income to calculate SDE.

Owner Salary / Compensation

Depreciation & Amortization

Interest Expense

One-Time / Non-Recurring Expenses

Other Personal / Non-Business Expenses

Seller's Discretionary Earnings (SDE) $0

Step 3: Business Profile

Industry

Years in Business

Revenue Trend (Last 2–3 Years)

Owner Involvement

Step 4: Value & Risk Factors

Value-Adding Factors (check all that apply)

Recurring revenue or contracts in place Documented systems, processes & SOPs Diversified customer base (no client over 10% of revenue) Growing industry / market tailwinds Long-term lease or owned real estate included

Risk Factors (check all that apply)

Customer concentration (one client is a large share of revenue) No written employee or customer contracts Outdated equipment or facilities Heavy competition or low barriers to entry

Step 5: Get Your Estimated Value Range

We'll email your results summary to our team so we can follow up if you'd like a more precise, broker-prepared valuation. We won't share your information.

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Last Name

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How We Calculate This Estimate

Seller's Discretionary Earnings (SDE)

Most small businesses (typically under $5 million in revenue) are valued as a multiple of Seller's Discretionary Earnings, not revenue or EBITDA alone. SDE starts with your business's Net Income, then adds back the owner's salary, depreciation and amortization, interest expense, and any one-time or personal expenses run through the business. The result is the total cash flow available to a single owner-operator — the number buyers and lenders actually use to judge affordability.

Multiple of Earnings

Once SDE is established, we apply a multiple — a range typically between 1.5x and 5x depending on industry, size, growth, risk, and how dependent the business is on the current owner. Businesses with recurring revenue, documented processes, a management team in place, and a diversified customer base command the higher end of the range. Businesses that are owner-dependent, concentrated in a few customers, or in a declining market fall toward the lower end.

Why the Range Matters More Than a Single Number

No online valuation calculator could ever give an exact figure for what your business is worth — this tool is designed to give you a reasonable, defensible starting range before you talk to a broker. A full Brokers Opinion of Value considers verified financials, add-back documentation, comparable transactions, and current buyer demand in your industry, and it will almost always sharpen the range this calculator provides.

Frequently Asked Questions

SDE is your business's Net Income plus the owner's salary, depreciation, amortization, interest, and any one-time or personal expenses added back. It represents the full financial benefit available to one owner-operator and is the standard cash flow measure used to value most small businesses.

Most small businesses sell for between 1.5x and 5x Seller's Discretionary Earnings, depending on industry, size, growth trend, customer concentration, and how dependent the business is on the current owner. Larger, more established businesses with recurring revenue and a management team in place typically command higher multiples.

It's a starting point, not a substitute for a professional valuation. This tool uses the numbers and factors you enter, without verifying financials or comparing against real transaction data. A Brokers Opinion of Value from Tangent Brokerage almost always produces a more accurate, and often higher, value range.

Recurring revenue, documented systems and processes, a diversified customer base, a management team that doesn't depend on the owner, a growing industry, and clean, well-organized financials all push your value toward the higher end of the range.

A professional Brokers Opinion of Value verifies your financials, normalizes add-backs with documentation, and compares your business against actual closed transactions in your industry and region. This calculator skips verification and comparables in exchange for an instant, free estimate.

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