Marketing & Advertising
Website Valuation Calculator
Calculate monthly and annual seller earnings, growth and risk factors, adjusted multiple, enterprise value, equity value, planning range, and earnings payback.
Monthly seller discretionary earnings-
Annualized seller discretionary earnings-
Growth adjustment factor-
Risk adjustment factor-
Adjusted earnings multiple-
Estimated enterprise value-
Estimated equity value after assets and liabilities-
Lower planning reference-
Upper planning reference-
Price divided by annual SDE-
Decision view
Enterprise-to-equity valuation waterfall
Enterprise-to-equity valuation waterfallNormalized annual earnings and the adjusted multiple lead to enterprise value before assets and liabilities bridge to equity value.
Enterprise-to-equity value bridgeTransferable assets are added and assumed liabilities are deducted from enterprise value.
Exact scenario comparisonBase annual earnings multiple changes while all other entered assumptions remain constant.
| Base annual earnings multiple | Monthly seller discretionary earnings | Annualized seller discretionary earnings | Growth adjustment factor | Risk adjustment factor | Adjusted earnings multiple | Estimated enterprise value | Estimated equity value after assets and liabilities | Lower planning reference | Upper planning reference | Price divided by annual SDE |
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How to use Website Valuation Calculator
- Enter normalized monthly revenue, cost, and documented add-backs.
- Enter the base multiple, growth, risk, assets, and liabilities.
- Review the enterprise-to-equity bridge and planning range.
Calculator guide
Understanding Website Valuation Calculator
Website valuation starts with normalized seller discretionary earnings, adjusts an earnings multiple for growth and risk, then bridges enterprise value to equity value.
Detailed calculation process
Bridge normalized website earnings to an equity-value range
The default uses $42,000 monthly revenue, $21,000 operating cost, $2,500 owner add-backs, 18% annual growth, a 15% risk discount, a 3.5 base multiple, $18,000 transferable assets, and $6,000 liabilities.
General formula: E_m = R-C+AE_a = 12 × E_mG = 1+g/200K = 1-d/100M = M_0 × G × KEV = E_a × MEQ = EV+T-LV_L = 0.8 × EQV_U = 1.2 × EQY = EQ/E_a Owner add-backs increase normalized seller earnings only when documented. Growth adjusts half as strongly as its entered percentage, risk discounts the multiple, and assets/liabilities are applied after enterprise value.
What each symbol means
Worked substitution with the default inputs
The default produces $282,000 annual SDE, a 3.24275 adjusted multiple, $914,455.50 enterprise value, and $926,455.50 equity value.
Purpose-built visual
Enterprise-to-equity valuation waterfall
The waterfall begins with enterprise value, adds assets, subtracts liabilities, and lands at equity value inside the displayed planning range.
Worked situations
Practical examples
- A website with $60,000 monthly revenue, $35,000 operating cost, and $3,000 of documented owner add-backs has normalized monthly SDE of $28,000 and annual SDE of $336,000.
- With a 4.0 base multiple, 10% growth, and a 20% risk discount, the adjusted multiple is 4.0 * 1.05 * 0.80 = 3.36. Enterprise value is therefore $336,000 * 3.36 = $1,128,960.
- Adding $50,000 of transferable assets and subtracting $90,000 of assumed liabilities produces $1,088,960 equity value. This bridge prevents operating value from being confused with the seller's final equity proceeds.
Better inputs
Useful tips
- Normalize owner compensation, one-time projects, and personal expenses before entering maintainable annual profit.
- Choose a multiple from comparable sites with similar traffic concentration, growth, workload, and platform risk—not from headline asking prices.
- Reconcile the implied valuation with buyer payback time and required working capital before treating it as an achievable sale price.
Before relying on the result
Limitations and common mistakes
- This is not an appraisal, fairness opinion, tax valuation, or transaction offer.
- Add-backs, traffic, contracts, intellectual property, customer concentration, and liabilities require verification.
- The growth and risk adjustments are transparent scenario rules rather than market-derived valuation standards.
Reference
Key terms
- SDE
- Seller discretionary earnings after documented normalization assumptions.
- Enterprise value
- Value of operating assets before separately entered cash-like assets and liabilities.
- Equity value
- Enterprise value plus transferable assets less assumed liabilities.
Important note
This is a transparent scenario valuation, not a market appraisal or transaction offer. Verify revenue quality, traffic concentration, owner add-backs, intellectual property, contracts, liabilities, tax treatment, and comparable transactions before relying on the result.
Frequently asked questions
Why are owner add-backs included?
They can normalize owner-specific expenses, but only documented and transferable adjustments should be used.
Is the multiple based on market comparables?
No. The calculator adjusts the multiple entered by the user.
Why separate enterprise and equity value?
Transferred assets and liabilities can change what the seller's equity is worth.
Can the result replace due diligence?
No. Financial, traffic, legal, technical, and commercial due diligence remains necessary.