SDE Calculator
Seller's Discretionary Earnings (SDE) measures the total financial benefit a single owner-operator derives from a business. Walk through each step to calculate yours.
The bottom-line profit after all expenses, before tax.
What is SDE?
SDE stands for Seller's Discretionary Earnings. It's the most widely used measure for valuing small to medium-sized businesses, especially owner-operated ones.
SDE starts with net profit and adds back expenses that are either non-cash (like depreciation), financing-related (like interest), or discretionary to the owner (like above-market salary or personal expenses run through the business).
Once you know your SDE, you can apply an industry multiple to estimate the market value of your business. Bizstats provides NZ-specific industry multiples based on real transaction data.