How much is a business worth with $1 million in sales?
Usually $480,000 to $1.04 million. The rest of this page shows why, and how to work out where yours sits.
Short answer: owner-run service businesses sold for 0.48 to 1.04 times their yearly sales (2021 to 2025), so a business with $1 million in sales typically sells for $480,000 to $1,040,000, around $710,000 in the middle. Buyers really price on what the owner earns, so two businesses with the same sales can be worth very different amounts.
It depends on what you keep
Buyers of small businesses multiply your seller's discretionary earnings (SDE): your profit plus what you pay yourself and any one-time or personal costs run through the business. Owner-run service businesses sold for 1.75 to 3.13 times SDE. Here is what that means for $1 million in sales:
| Owner earnings (SDE) | Low | Middle | High |
|---|---|---|---|
| 10% of sales ($100,000) | $175,000 | $238,000 | $313,000 |
| 20% of sales ($200,000) | $350,000 | $476,000 | $626,000 |
| 30% of sales ($300,000) | $525,000 | $714,000 | $939,000 |
Low, middle and high are the 25th percentile, median and 75th percentile multiples of earnings for service businesses that sold, from BizBuySell's valuation benchmarks. Your result shows a range, not a single price.
Work out your own number
By trade
Multiples differ by industry. For $1 million in sales:
- HVAC: $380,000 to $740,000
- Plumbing: $420,000 to $850,000
- Electrical: $390,000 to $720,000
- Landscaping: $460,000 to $880,000
- Roofing: $350,000 to $740,000
- Septic: $500,000 to $1.29 million
Questions people ask
How much is a business worth with $1 million in sales?
For a typical owner-run service business, about $480,000 to $1.04 million: that is 0.48 to 1.04 times yearly sales, the middle half of what businesses like it sold for (2021 to 2025). Where yours lands depends mostly on how much of that million you keep.
Is revenue or profit used to value a small business?
Profit, mostly. Buyers of owner-run businesses price on seller's discretionary earnings (SDE): profit plus what the owner pays themselves and one-time or personal costs. Revenue is the cross-check.
What multiple of earnings do small businesses sell for?
Most owner-run service businesses sold for 1.75 to 3.13 times SDE, with 2.38 times in the middle.
What raises the price?
Recurring customers, earnings that hold up without the owner doing the work, clean books, growth over the last three years and a business that does not depend on one customer or one referral source.
Want a sharper number? Our free business analysis uses your real books and your market, compares you with businesses for sale near you and shows what would raise the price. See also how to value a small business to sell.
This is an estimate for planning, not an appraisal or financial advice.