Business Valuation Calculator Australia
Free Australian business valuation calculator. Estimate what your business is worth using the multiple-of-earnings method: enter your adjusted annual profit (net profit plus add-backs such as the owner's wage, super, and one-off costs) and choose an industry multiple to see a low, typical, and high value range. Built for owner-operated small businesses using common Australian SDE multiples. A quick ballpark only, real valuations depend on assets, debt, growth, recurring revenue, and comparable sales, and should be done by a qualified valuer.
Your business
EstimateYour annual profit before the owner's wage if you'll add it back below.
Owner's wage + super, one-off costs, personal expenses, interest, depreciation.
Common starting points for owner-operated businesses, not measured market data. If your broker has given you a multiple off comparable sales, choose Custom and use theirs.
The six industry multiples above are common starting points, not measured market data. A real multiple is set by the market and turns on recurring revenue, growth, how much the business depends on you, and how concentrated your customers are, so treat the range below as something to test with a broker rather than a price. Get a professional valuation before acting on it.
- Conservative
- $0
- 2.0× adjusted earnings
- Typical estimate
- $0
- 2.5× adjusted earnings
- Optimistic
- $0
- 3.0× adjusted earnings
Enter your annual net profit (and any add-backs) and pick an industry to see an estimated value range. A business with stronger recurring revenue, lower owner dependence and cleaner financials will sit toward the upper end of its range.
Rough estimate only. A real valuation depends on assets, debt, lease and contracts, growth, customer concentration and recent comparable sales, and may trigger capital gains tax. Speak to a qualified business valuer, accountant or broker before you buy, sell, or raise finance.
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How to value a business in Australia
The most common way to value a small, owner-operated Australian business is the multiple-of-earnings method: take the adjusted annual profit the business generates and multiply it by an industry multiple. The adjusted profit figure is usually Seller's Discretionary Earnings (SDE) for smaller businesses, or EBITDA (earnings before interest, tax, depreciation and amortisation) for larger ones.
The business valuation formula
The plain-text formula this calculator uses is:
Estimated value = (net profit + add-backs) × industry multiple, with a low and high range applied by varying the multiple by about ±0.5×.
What are add-backs?
Add-backs are expenses a new owner wouldn't have to keep paying, so they get added back to net profit to reveal the real earning power. Typical add-backs are the current owner's wage and super, one-off or non-recurring costs, interest and depreciation, and personal expenses run through the business. Genuine, documented add-backs lift the earnings base, and therefore the value.
Starting multiples by industry
| Industry (owner-operated) | Starting multiple (of SDE) |
|---|---|
| Trades & contracting | ~1.5× |
| Retail / hospitality | ~2× |
| Professional services | ~2.5× |
| Manufacturing / wholesale | ~3× |
| Healthcare / allied health | ~3.5× |
| SaaS / recurring revenue | ~4×+ |
These six are starting points we chose to give the calculator somewhere to begin, not measured market data, and no published dataset sits behind them. Multiples are market-driven and not set by any government body: they shift with conditions and run higher for businesses with strong recurring revenue, diversified customers, low owner dependence and reliable growth. The figure worth trusting is the one a broker gives you off comparable recent sales in your sector, and the Custom option above takes it.
Worked example: valuing a $200,000-profit business
Suppose your business shows $150,000 net profit and you can justify $50,000 of add-backs (your replacement wage and a one-off legal cost). Adjusted earnings (SDE) = $200,000. At a professional-services multiple of 2.5×, the typical value is $200,000 × 2.5 = $500,000. Applying a ±0.5× band gives a range of about $400,000 (2.0×) to $600,000 (3.0×).
Why this is only an estimate
A real valuation weighs assets and stock, debt and liabilities, lease and contract terms, intellectual property, working capital, growth trajectory, and recent comparable sales, and considers tax outcomes like capital gains tax and the small business CGT concessions. Before you sell, buy, raise finance, or use a figure for tax, legal or family-law purposes, get a formal valuation from a qualified business valuer, accountant or registered broker.
Frequently asked questions
How much is my business worth?
A common rule of thumb for a small Australian business is its adjusted annual profit (seller's discretionary earnings, or SDE) multiplied by an industry multiple, typically around 1.5× to 4× for owner-operated businesses. For example, a business with $200,000 of adjusted profit at a 2.5× multiple is worth roughly $500,000. This is only a rough estimate: the final price depends on growth, recurring revenue, customer concentration, owner dependence, assets, and what a buyer will actually pay.
What is SDE and why use it instead of net profit?
SDE (Seller's Discretionary Earnings) is the true earning power of an owner-operated business: net profit plus 'add-backs' such as the owner's salary, superannuation, one-off costs, personal expenses run through the business, interest, depreciation and amortisation. Buyers of small businesses value on SDE because it shows what a single working owner can take out. Larger businesses are usually valued on EBITDA (earnings before interest, tax, depreciation and amortisation) instead.
What are add-backs in a business valuation?
Add-backs are expenses in your accounts that a new owner would not have to pay, added back to net profit to show the real earnings. Common add-backs include the current owner's wages and super, one-off legal or setup costs, personal vehicle or travel expenses, above-market rent paid to a related party, and non-recurring items. Add-backs must be genuine and documented, a buyer's accountant will scrutinise them during due diligence.
What multiple should I use to value my business?
Multiples vary by industry, size and risk. Small owner-operated Australian businesses commonly sell for around 1.5× to 4× SDE: trades and contracting near the lower end, professional services and healthcare in the middle, and SaaS or recurring-revenue businesses at the higher end. Higher multiples reflect strong recurring revenue, low owner dependence, diversified customers, growth, and clean financials. This calculator's presets are a starting point, comparable recent sales in your sector are the best guide.
Does this calculator give an official valuation?
No. This is a quick, rough estimate to give you a ballpark figure. A formal business valuation considers far more, assets and stock, liabilities and debt, lease terms, contracts, intellectual property, working capital, growth trajectory, and recent comparable sales, and is prepared by a qualified business valuer, accountant or broker. Use a professional valuation before selling, buying, raising finance, or for tax, legal or family-law purposes.
Should I include stock, equipment and assets in the value?
It depends on the deal. SDE-multiple valuations usually price the business as a going concern including the normal plant and equipment needed to operate. Saleable stock on hand is often added on top at cost, and significant freehold property or surplus assets are typically valued and sold separately. Outstanding debt is normally settled by the seller from the proceeds. Confirm what's in and out of scope with your accountant or broker.
Sources & methodology
How we calculate this
This estimator multiplies your adjusted annual earnings, net profit plus any add-backs (owner's wage, super, one-off and personal costs), by an earnings multiple to produce a low/typical/high value range. The multiple comes from the industry preset you pick or from a custom value you type, and the low and high figures apply a ±0.5× band around it (the low multiple is floored at 0.5×). The six industry presets are common starting points rather than measured market data: no published dataset sits behind them, and they are deliberately labelled 'start at' rather than 'typical' for that reason. Multiples are set by the market, not legislated, and vary widely with growth, recurring revenue, owner dependence and customer concentration, so a broker's figure off comparable sales beats any of ours. Everything is computed in your browser, nothing you enter is stored or sent to a server.
Authoritative sources
Reviewed by Bishal Shrestha, Founder of OneBookPlus, 10+ years building tools with Australian tax-agent and BAS-agent practices. Page last reviewed and updated: .
Disclaimer: This tool provides estimates only and is not professional advice. For decisions that affect your tax, finances, or compliance position, consult a registered professional.
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