How Much Is My HVAC Business Worth?

Free HVAC company valuation

1. Earnings

Use your most recent full year — your tax return or P&L. Estimates are fine; you can change any answer later.

Annual revenue

Total sales before expenses. Example: 850000

Reported profit

Net profit before income tax, as shown on your P&L or tax return. Enter a negative number for a loss. Example: 95000

Owner pay

Salary, draws, payroll taxes and benefits paid to one working owner. Example: $70,000 salary + $8,000 health insurance = 78000

Interest, depreciation & amortization (optional)

Non-cash and financing costs on your P&L. Example: 12000 of depreciation on a work truck

One-time or personal expenses (optional)

Costs a new owner wouldn't have. Example: a 6000 legal settlement, or a family member's phone paid by the business

Seller's discretionary earnings (SDE): —

Profit + owner pay + add-backs. SDE is what one full-time owner-operator takes home, and it's the standard earnings figure buyers use for businesses selling under about $2M.

2. About your business

Industry

State

Years in business

Revenue change vs. prior year (%) (optional)

Employees, not counting you

Your role day to day

I run daily operationsStaff handle most of it; I overseeIt runs without me

3. What transfers to a buyer

Check everything that applies.

Recurring revenueCustomers pay on a regular schedule, such as memberships, subscriptions or service plansCustomer contracts of 6 months or moreSigned agreements that would transfer to a new ownerOne customer is more than 25% of revenueBuyers look closely at how dependent revenue is on a single customerThe business owns its building or landProperty is valued separately and isn't included in the estimate

How Home Services & Trades businesses are valued

HVAC businesses are usually priced as a multiple of seller's discretionary earnings (SDE), with recurring maintenance-contract revenue pushing valuations higher. Buyers pay a premium for a trained technician team, established service routes, and maintenance agreements that provide predictable recurring revenue.

Across all industries, small businesses selling for under $2M averaged 2.0×–3.1× SDE (IBBA & M&A Source Market Pulse, Q4 2025). The calculator above starts from these averages; businesses in your industry may trade above or below them.

What buyers look for

→Recurring maintenance contracts as a percentage of revenue
→Licensed technicians who will stay after the transition
→Established service territory with repeat customer base
→Clean service vehicles and equipment inventory included

What increases your valuation

✓Maintenance agreement revenue commands highest multiples
✓Commercial contracts are more stable than residential — buyers pay more
✓Fully staffed team that doesn't depend on the owner
✓Proprietary customer database and service history