Free Service Business Valuation Calculator

Your inputs — valuation updates as you type

Financials

Annual revenue

Gross revenue from the most recent full year.

EBITDA or seller's discretionary earnings

Seller's discretionary earnings (SDE) adds back owner salary and benefits.

EBITDA margin: 15.0%

Business Quality

Recurring revenue share: 35%

Revenue from maintenance agreements, service plans, or contracts versus one-time jobs.

Number of active customers

Customers who have had at least one job in the past 12 months.

Largest customer as % of revenue

Revenue concentration risk. Below 10% is healthy; above 20% is a red flag for buyers.

Years in business

Owner hours per week needed

The hours the business needs from you to run.

A business that runs without the owner commands a higher multiple than one that stops when the owner steps out.

Market

Service area and market density

A dense route with low drive time per stop is more efficient and more valuable than a spread-out rural territory of equal revenue.

Revenue growth trend (last 3 years)

EBITDA-based valuation range

$—

Multiple used: —

Low estimate (EBITDA x low multiple) $—

High estimate (EBITDA x high multiple) $—

Revenue cross-check (0.5x to 1.5x revenue) $—

Indicated range (EBITDA method) $—

Key drivers affecting your multiple

Enter your numbers above to see the top factors helping or hurting your valuation.

What this valuation calculator includes

A credible service business valuation accounts for much more than revenue. These are the eight factors a business broker or buyer will evaluate when they look at your numbers.

Annual revenue — the top-line gross revenue from the most recent full year, which sets the revenue-multiple floor on valuation
EBITDA or seller's discretionary earnings — earnings before interest, taxes, depreciation, and amortization, or SDE for smaller owner-operated businesses, which is the primary driver of the income-based valuation
Revenue mix — what share of revenue is recurring contracted (maintenance agreements, service plans) versus one-time jobs, since recurring revenue commands a meaningfully higher multiple
Number of active customers — a large, diversified customer base with no single customer above 10 to 15 percent of revenue increases the multiple; customer concentration reduces it
Business age and owner dependency — how long the business has operated and whether it can run without the owner, since a business that stops when the owner leaves is worth less than a systems-driven operation
Service area and market density — a dense urban or suburban route with low drive time per stop is more valuable than a rural route of equal revenue
EBITDA multiple range — the typical multiple buyers pay for field service businesses by size and quality, from 2.5x for a struggling small business to 5x or more for a recurring-revenue leader in a growing market
Adjusted valuation range — the estimated range the business might sell for based on the inputs, with a note that actual value depends on due diligence, market conditions, and buyer type

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Claver's reporting gives the owner the metrics that buyers and lenders look at first — revenue per tech, recurring revenue percentage, customer retention rate, and job gross margin. Building these numbers over time, and being able to show them in a clean export, is what turns a good service business into a transferable one.

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Service business valuation — FAQ

How is a service business valued?

Service businesses are typically valued using a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization) or seller's discretionary earnings. The multiple varies from about 2.5x for smaller owner-operated businesses to 5x or higher for businesses with strong recurring revenue, low owner dependency, and clean financials. Revenue multiples of 0.5x to 1.5x are sometimes used as a secondary check.

Is this calculator really free?

Yes, the service business valuation calculator is free with no signup, no credit card, and no data stored on a server, so the financial information stays on the device.

What increases a service business's valuation multiple?

Higher recurring revenue percentage, low customer concentration (no single customer above 10 to 15 percent of revenue), documented systems that let the business run without the owner, strong customer retention, clean books, and year-over-year revenue growth all tend to increase the multiple buyers are willing to pay.

Free service business valuation calculator

Key drivers affecting your multiple

What this valuation calculator includes

Build a more valuable service business with Claver

Service business valuation — FAQ

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