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 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.
Typical multiples for owner-operated businesses. Choose Custom to set your own.
Industry multiples are set by the market, not legislation, and change with conditions, growth and buyer demand. This is a rough estimate only — get a professional valuation before acting.
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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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 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×.
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.
| Industry (owner-operated) | Typical 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×+ |
Multiples are market-driven and not set by any government body — they shift with conditions and are higher for businesses with strong recurring revenue, diversified customers, low owner dependence and reliable growth. Treat these as a starting point, not a guarantee.
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×).
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.
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.
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.
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.
Multiples vary by industry, size and risk. Small owner-operated Australian businesses commonly sell for around 1.5×–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.
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.
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
This estimator multiplies your adjusted annual earnings — net profit plus any add-backs (owner's wage, super, one-off and personal costs) — by an industry earnings multiple to produce a low/typical/high value range. The typical multiple comes from your selected industry preset or a custom value, and the low and high figures apply a ±0.5× band around it (the low multiple is floored at 0.5×). Industry multiples are market-driven, not legislated, and vary widely with growth, recurring revenue, owner dependence and customer concentration. 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. Last reviewed and updated: June 2026.
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.
OneBookPlus handles invoicing, GST tracking, BAS prep, and ATO lodgement automatically.