What does this valuation calculator do?
It gives illustrative valuations using two common methods: (1) revenue × a multiple (e.g. 2.5× annual revenue), and (2) profit or SDE × a multiple (e.g. 3×). Ecommerce businesses often sell in the 2–4× range for both. Actual value depends on growth, margins, and buyer demand.
Enter your annual revenue, annual profit (or SDE), and a revenue multiple below.
Valuation (revenue × 2.5x)$1,250,000
Valuation (profit/SDE × 3)$225,000
Ecommerce often sells at 2–4× revenue or 2–4× SDE/profit. This is illustrative; actual valuation depends on growth, margins, and market.
Improving your valuation
Buyers pay more for growth, margin, and clean metrics. Use our LTV Calculator, Gross Margin Calculator, and Break-Even Calculator to strengthen unit economics and positioning.
FAQ
- How is ecommerce business value calculated?
- Buyers often use revenue multiples (e.g. 2–4× annual revenue) or profit/SDE multiples (e.g. 2–4× annual profit). The tool shows both; actual deals depend on growth, margins, and niche.
- What is SDE?
- Seller’s Discretionary Earnings: profit before owner salary and one-off items. Often used for small ecommerce valuations instead of strict net profit.
- Is this valuation calculator free?
- Yes. Free with no signup. For profitability see Gross Margin Calculator and Break-Even Calculator; for growth see LTV and ROI tools.