Resources | Business Calculators
How does this business compare? Check a listing against what its industry sells for.
Enter the figures from a business for sale to see how its asking multiple, revenue multiple and price compare with businesses that sold in the same industry.
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Business Calculators / Business Benchmark Calculator
Business Benchmark Calculator
How much of each sales dollar reaches the owner. Higher usually points to a healthier business.
How is this compared?
We compare the listing with the average for businesses that sold in the same industry. The asking multiple is Asking Price / SDE and the revenue multiple is Asking Price / Revenue. Within 15% of the average reads as in line. For a buyer, a higher multiple than peers means a richer price; stronger revenue, SDE and margins point to a healthier business. Then test the financing with the Debt Service Coverage and Cash-on-Cash calculators.Averages from BizBuySell Insight Data, businesses sold Q3 2021 through Q2 2026. A listing priced above its peers is not necessarily overpriced, and one below is not necessarily a bargain. Always review the financials, terms and market. Not an appraisal or an offer.
The Business Benchmark Calculator gives a buyer a quick read on how a business for sale compares with its peers. Enter a listing's industry, asking price, cash flow (SDE) and, if you have it, annual revenue. The calculator compares the asking SDE multiple, the revenue multiple and the asking price with the averages for businesses that sold in the same industry, and shows the SDE margin.
It is a first filter before you spend time on due diligence, not an appraisal. When a listing passes the first look, an EDGE advisor can help you dig into whether the numbers hold up.
Questions
Business Benchmark Calculator: frequently asked questions
What does this calculator tell me?
Whether a listing's price is in line with what similar businesses sold for, measured three ways: price to SDE, price to revenue, and price against the industry's median sale price.
Who is it for?
Buyers who want a quick check on a listing before they request financials or sign an NDA.
What is the asking SDE multiple?
The asking price divided by the business's SDE. It is the most common way buyers and brokers compare prices across businesses of different sizes.
Why is SDE the basis for comparison?
SDE is the cash a working owner can take out, which is what a buyer is really paying for. Revenue says how big a business is, not how profitable.
What does SDE margin tell me?
How much of each sales dollar reaches the owner. A margin well below peers can mean thin pricing or high costs; well above can mean an efficient business, or add-backs that need checking.
Why is revenue optional?
The SDE multiple is the main measure. Revenue adds a second view and the margin, so enter it when the listing gives it.
What do the coloured chips mean?
Green means in line with or below the industry average; amber means more than 15% above it. Above average is not wrong, it is a question to ask.
What data are the averages based on?
Average multiples and median sale prices for businesses sold from mid 2021 to mid 2026, by sector and industry, from BizBuySell Insight Data.
If a listing is priced above its peers, is it overpriced?
Not necessarily. Growth, recurring revenue, real estate, an absentee owner or strong staff can justify a premium. The comparison tells you what to ask about.
Is this an appraisal?
No. It is an educational comparison and not an appraisal or an offer.
Next Step
Put these numbers to work on a real deal.
Buyer's EDGE is free: save target businesses, model each deal in the Acquisition Center and learn the process in Acquisition Academy. Selling? The Seller Portal starts a confidential sale. Either way, an EDGE advisor can help from the first conversation through closing, financing included.