Free calculator
SDE Calculator — Seller's Discretionary Earnings
Seller's discretionary earnings is the number most small businesses are priced on: profit plus the owner's salary and personal expenses added back. Enter your figures to see your SDE and the value range it supports.
Your numbers
The numbers
Step 1 of 3
Loading your calculator…
How this valuation is worked out
For owner-operated businesses under roughly $5M in revenue, buyers price on SDE rather than EBITDA, because the owner's pay is part of the return. Take net profit, add back the owner's salary, benefits, one-off costs and any personal expenses run through the business, then apply the multiple for your category.
A worked example
Net profit of $95K, plus an owner salary of $70K, $8K of personal vehicle and travel costs and a one-off $12K legal bill gives SDE of $185K. At 2.5–3.5× SDE that supports roughly $460K–$650K, before adjusting for how much the business depends on the owner.
Multiple ranges reviewed September 2026, based on offers buyers in our network are making today. They are a guide, not a quote — see how the process works.
What moves your number
- Add-backs must be defensible — anything a buyer disputes comes straight off the price
- Consistent SDE across three years beats one strong year
- Businesses that can run without the owner earn a higher multiple
- Clean books shorten diligence and protect the price
Want the full picture? SDE vs EBITDA: Which One Buyers Actually Use
Common questions
What is the difference between SDE and EBITDA?
SDE includes one owner's compensation as profit; EBITDA does not. Smaller owner-run businesses are valued on SDE, larger ones on EBITDA.
What can I add back?
Owner salary and benefits, one-time legal or repair costs, personal vehicles or travel, and any expense the new owner would not carry forward.
What SDE multiple is normal?
Most small businesses trade between 2 and 4 times SDE, higher where revenue is recurring and the owner is not essential.