Free SDE Calculator
Calculate your Seller's Discretionary Earnings (SDE) — the most important metric for valuing a small to mid-sized business. Free to use, with optional QuickBooks auto-import.
Open the CalculatorWhat Is Seller's Discretionary Earnings (SDE)?
SDE is the total financial benefit a full-time owner-operator derives from a business in a given year. It is calculated as net income plus owner compensation, plus any personal or one-time expenses run through the business (called "add-backs").
SDE Formula: Net Income + Owner Salary + Owner Benefits + Depreciation & Amortization + Interest + One-Time Add-backs
SDE vs. EBITDA — Which Should You Use?
- SDE is used for small businesses ($500K–$5M value) where one owner works full-time in the business.
- EBITDA is used for larger businesses ($5M+ value) or those with professional management teams in place.
- Buyers apply a multiple (typically 2–4× SDE or 3–7× EBITDA) to determine business value.
QuickBooks Integration
Connect your QuickBooks account to auto-populate your P&L data — revenue, COGS, operating expenses, depreciation, and owner salary — directly into the SDE calculator. No manual data entry required.
Want to Know What Your Business Is Worth?
Use our SDE calculator to get your earnings, then talk with our M&A team for a full valuation.
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