SDE Calculator: Seller's Discretionary Earnings
SDE is the standard metric for valuing small online businesses. Enter your financials below to calculate SDE and apply market multiples for an instant business valuation estimate.
SDE Formula
Net Profit
+ Owner Salary
+ Owner Benefits & Perks
+ One-Time Non-Recurring Expenses
+ Depreciation & Amortization
= SDE
What is SDE?
Seller's Discretionary Earnings (SDE) represents the total financial benefit that a single owner-operator derives from a business. It's the standard valuation basis for online businesses under $5M.
Typical SDE Multiples by Business Type
| Business Type | SDE Multiple Range |
|---|---|
| SaaS | 3–7x SDE |
| Ecommerce | 1.5–4.5x SDE |
| Content Site | 2.5–5.5x SDE |
| Amazon FBA | 2–5.5x SDE |
| Digital Agency | 2–5x SDE |
| Newsletter | 2–5x SDE |
2026 Business Valuation
Free appraisal based on real M&A data
What type of business are you valuing?
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Estimates based on 2026 M&A data. For informational purposes only.
Frequently Asked Questions
SDE = Net Profit + Owner Salary + Owner Benefits + One-Time Expenses. It represents the total cash benefit to a single owner-operator. It's the primary metric used to value small online businesses under $5M.