Business Valuation Calculator
Estimate what a handyman business is worth using EBITDA multiples with service-business adjustment factors.
Financial Information
Health insurance, vehicle, phone, etc.
New tools purchase, vehicle repair, etc.
Business Factors
Estimated Business Value
Multiple Adjustment Factors
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How to Use This Calculator
1. Enter your financial numbers. Pull these from your most recent tax return or profit and loss statement. Use annual figures. Net profit is the bottom line after all expenses, including your salary.
2. Add owner compensation and add-backs. Include your total salary, benefits (health insurance, vehicle, phone), any one-time expenses that will not recur, depreciation, and interest. These get added back to net profit to calculate SDE.
3. Select your business factors. Be honest about where your business stands. Each factor shifts the valuation multiple up or down. Repeat customer rate and owner dependence have the largest impact on value.
4. Review the estimated value range. The calculator shows a conservative, mid-range, and optimistic estimate. Most deals close near the midpoint, but businesses with strong systems and reputation can push toward the high end.
5. Test different scenarios. Change the inputs to see what drives value. If you are planning to sell in 2-3 years, focus on the factors you can improve: build up repeat customers, reduce owner dependence, collect reviews, and clean up your books.
How Handyman Business Valuation Works
The SDE multiple method is the standard for valuing owner-operated service businesses. SDE (Seller's Discretionary Earnings) represents the total economic benefit available to a single owner. It starts with net profit and adds back the owner's salary, benefits, one-time expenses, depreciation, and interest.
SDE = Net_Profit + Owner_Salary + Owner_Benefits + One_Time + Depreciation + Interest
Base_Multiple = determined by annual revenue bracket
Adjusted_Multiple = Base_Multiple + Sum(Factor_Adjustments)
Valuation_Mid = SDE x Adjusted_Multiple
Valuation_Low = SDE x (Adjusted_Multiple - 0.5)
Valuation_High = SDE x (Adjusted_Multiple + 0.5)
Repeat customers are the biggest value driver. A handyman business with loyal, returning clients provides predictable revenue that transfers to a new owner. A business with 60%+ repeat customers can see its multiple jump by a full point compared to one relying entirely on one-time calls from lead platforms.
Owner dependence is the biggest value killer. If you are personally doing all the work, answering every call, and managing every customer, a buyer sees risk. Businesses that run with a crew and systems command higher multiples because the revenue does not walk out the door with the seller.
When To Use This
Thinking of selling. If you are considering an exit in the next 1-5 years, run your numbers now to get a baseline. Then focus on the adjustable factors: build repeat customer relationships, hire help, collect online reviews, and get your books clean with a CPA.
Buying a handyman business. Before you make an offer, run the seller's numbers through this calculator. Compare the asking price to the estimated range. If the seller wants more than the high estimate, you need to understand what justifies the premium.
Setting long-term goals. Even if selling is years away, knowing what your business is worth today helps you make decisions. Should you invest in marketing? Hire an employee? These choices make more sense when you can see their impact on business value.