How Much Is My Home Services Business Worth?

Free home services and trades business 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

Home services and trades businesses (plumbing, cleaning, laundromats, landscaping, electrical and similar) are usually priced as a multiple of seller's discretionary earnings (SDE). Repeat customers, recurring service agreements and a team that can run the work without the owner are what buyers pay more for.

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 or repeat revenue as a share of the total
→Licensed or trained staff who will stay after the sale
→An established service area and customer list
→Equipment and vehicles included and in good condition

What increases your valuation

✓Service agreements and repeat commercial customers add stability
✓A team and processes that don't depend on the owner
✓Clean records of jobs, customers and pricing