Small Business Valuation Calculator
Enter your seller's discretionary earnings and the multiple that fits your business model. The tool estimates a reasonable sale price range after applying growth expectations, included assets, and a risk discount.
How this valuation works
Small business sales for side hustles are typically based on seller's discretionary earnings (SDE)—your profit after adding back owner's salary and personal perks. This calculator multiplies SDE by your chosen market multiple, adds tangible assets that transfer with the sale, then subtracts cash the buyer must inject or debts they take on. Finally, it applies a risk discount to recognize execution and transition uncertainty. In formula form:
Where is the growth adjustment, the earnings multiple, the assets that convey, the working capital needed, and the debt assumed by the buyer.
Choosing a multiple
Micro-acquisitions often transact between 1.5× and 4× SDE. Higher multiples go to businesses with recurring revenue, strong documentation, and teams that can operate without you. Use the profile dropdown for a quick starting point, then adjust the multiple after looking at recent comps on marketplaces like MicroAcquire or Flippa.
Adjusting for growth and risk
A growing side hustle deserves credit for momentum, while a shrinking one should be discounted. The growth adjustment scales your SDE up or down before applying the multiple. The risk discount accounts for customer concentration, platform dependence, or a tricky transition. Documented processes, signed client contracts, and transferable assets help justify a lower discount.
When to revisit your estimate
Update this valuation every quarter or after a major shift—new product line, key client loss, or when you hire help. Track SDE separately from top-line revenue so you know exactly what a buyer gains. Pair this tool with your cash flow planner to confirm the business still funds your personal goals after a sale.