BUSINESS VALUATION CALCULATOR INSTRUCTIONS
Below you will find the instructions for our business valuation calculator along with explanations for each step and the inputs required to properly calculate the value of your business.
Step 1
Sales – Enter in the amount of money your business receives for selling its product or service.
Cost of Goods Sold – Enter in your cost of goods sold.
Operating Expenses – Enter in your total operating expenses.
Depreciation – Enter in the depreciation amount shown on your tax return. See chart below.
Interest – Enter in the amount of interest expense paid by your company on various types of loans, credit card balances, etc. See chart below for further instructions on where to find the amount on your tax return.
One Time Income – Enter in any amount of money that your business received which is unusual and non-recurring. Examples include sale of a patent, gain from selling a delivery truck, investment income.
One Time Expenses – Enter in any amount of money that your business paid that is not an ordinary business expense. Examples include office renovations, losses from the sale of operating assets not related to the core operations of the business.
Officers’ Salary – Enter in total compensation paid to all officers in your company.
Adjustments for Officers’ Salary – Enter in the amount that it would cost to hire a replacement for you. This amount should be the average salary that is paid to an employee in a company that is of similar size within your industry.
| S-Corporation | C-Corporation | Partnership | Sole Proprietorship | |
| Form | 1120 S | 1120 | 1065 | 1040 Schedule C |
| Sales | Line 1a | Line 1a | Line 1a | Line 1 |
| Cost of Goods Sold | Line 2 | Line 2 | Line 2 | Line 4 |
| Operating Expenses | Line 20 | Line 27 | Line 20 | Line 28 |
| Depreciation | Line 14 | Line 20 | Line 16a | Line 13 |
| Interest | Line 13 | Line 18 | Line 15 | Line 16a |
| One Time Income | Line 5* | Line 10* | Line 7* | Line 6* |
| One Time Expense | Line 19* | Line 26* | Line 20* | Line 27a* |
| Officer Salary | Line 7 | Line 12 | Line 10 | Not Applicable |
| *Only include expenses that are not already included |
Each input above can be found on your company’s tax return. This chart tells you where to look.
Step 2
Industry – Choose the primary industry for your business.
Your Business Risk Assessment – For each risk factor, place the slider on the value that best describes the current situation for your company. Consider each factor carefully.
Business Name – Enter the name of your company.
Your Name – Enter your full name.
Email – Enter your email and then click calculate so we may send to you the estimated business value of your business.