Seller's discretionary earnings calculator
SDE is what a single owner-operator earns from the business. It is the figure small business buyers multiply to set a price. Enter your numbers. See yours.
Why buyers use SDE
A small business is usually bought by someone who will run it themselves. SDE shows the total benefit available to that one owner: the profit plus the pay and perks the current owner takes. Multiply it by the multiple that similar businesses sold for, and you have a price estimate.
Work you can look at
Questions people ask
Is SDE the same as EBITDA?
Close, but not the same. SDE adds back the owner's whole compensation and personal expenses, so it is higher than EBITDA for an owner-run business.
Should I add back my whole salary?
For SDE, yes, because it measures what one owner-operator earns. A buyer who needs to hire a manager will think in adjusted EBITDA instead.
Is this financial, legal or tax advice?
No. It is a free estimate to help you plan and to start a conversation with your lender, accountant or advisor. Check the real figures with them before you decide.
More free tools
EBITDA CalculatorBusiness Sale Tax CalculatorDebt Service Coverage Ratio (DSCR) CalculatorWhat is my business worth?
This is an estimate for planning, not financial, legal or tax advice.