Arizona Business Valuation Calculator
What is my business worth?
Under $500,000, a business sells for about 2 times a year of owner earnings (SDE, what it pays one full-time owner), by the IBBA's closed deals. A business paying its owner $200,000 sells for about $400,000. Enter your numbers below. No signup.
Eddy Roche, Associate Broker, HUB AZ Brokers
2.0×
Under $500K, sale price to a year of owner earnings
Your range shows here
- Pick your industry
- Enter what it pays you a year (SDE)
- See your range
What moves you up or down
Four things a buyer and a lender look at.
- How much it depends on you
- Runs without you: top of the range. Stops when you leave: bottom.
- Clean, steady books
- Three years of returns that match the P&Ls, earnings flat or rising.
- The lease
- Years left and a landlord who will assign it protect the price.
- How it gets paid for
- A price the business can carry with a loan payment closes.
How this calculator works
Closed sales.
Closed sales
National closed-sale data (marketplace reports), Q3 2021 to Q2 2026.
Anchored on about 2x under $500K
Under $500,000 of earnings the range sits around the IBBA's closed-deal multiple; the industry nudges it a little.
Your answers move the marker
Years in business and owner hours shift where you sit.
Your real price comes from your books and lease. That is the free valuation I do at value my business.
Questions owners ask
Short answers.
- What is my business worth?
- Under $500,000, a business sells for about 2 times a year of owner earnings (SDE, what it pays one full-time owner), by the IBBA's closed deals. A business paying its owner $200,000 a year sells for about $400,000 at that multiple. Your industry, your books and how much the business depends on you move it up or down.
- How many times profit does a small business sell for?
- Under $500,000, about 2 times a year of owner earnings, by the IBBA's closed deals. "Profit" here means SDE, which adds the owner's pay back in.
- How much is a business with $500,000 in sales worth?
- It depends far more on what the business earns than on sales. Buyers pay for owner earnings (SDE), so two businesses with the same $500,000 in sales can be worth very different amounts. Enter what the business pays you in the calculator above for an estimate.
- How accurate is this calculator?
- It is an estimate from published national averages of businesses that sold (Q3 2021 to Q2 2026), not an appraisal. Individual sales scatter well above and below an average, which is why it shows a wide range. My free valuation starts from your tax returns and what similar Arizona businesses sold for, and gives you one number you can list at.
- What is SDE and how do I find mine?
- Start with net profit on your tax return. Add back your own salary, your health insurance and personal expenses run through the business, interest, depreciation and one-time costs. The total is Seller's Discretionary Earnings, the number buyers and lenders price on.
- Does anyone see the numbers I enter?
- No. The calculator runs in your browser and nothing is saved unless you ask me to email you the range. Then it comes to me only, and nobody else learns that your business might be for sale.