Tool

Seller Discretionary Earnings Calculator

Calculate SDE from net income, owner compensation, add-backs, one-time expenses, non-recurring revenue, replacement manager salary, and maintenance capex before valuing a business.

Use SDE before using a valuation multiple

Seller discretionary earnings is often the first cash-flow screen for owner-operated business acquisitions. The quality of add-backs matters: buyer, lender, broker, CPA, and tax views can differ. Use this estimate before the business valuation calculator, business sale proceeds calculator, and business acquisition loan calculator.

This calculator is an estimate for planning and comparison only. It does not replace quality of earnings work, tax advice, lender underwriting, buyer due diligence, legal review, or broker valuation guidance.