Free Calculator
Free service business valuation calculator
Enter your revenue, EBITDA, and business characteristics to get a valuation range based on the multiples buyers actually pay for field service businesses. No signup, no data stored, runs entirely in your browser.
Your inputs, valuation updates as you type
Financials
Gross revenue from the most recent full year.
Seller's discretionary earnings (SDE) adds back owner salary and benefits.
EBITDA margin: 15.0%
Business Quality
Revenue from maintenance agreements, service plans, or contracts versus one-time jobs.
Customers who have had at least one job in the past 12 months.
Revenue concentration risk. Below 10% is healthy; above 20% is a red flag for buyers.
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
A dense route with low drive time per stop is more efficient and more valuable than a spread-out rural territory of equal revenue.
EBITDA-based valuation range
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Multiple used:
Low estimate (EBITDA x low multiple)
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High estimate (EBITDA x high multiple)
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Revenue cross-check (0.5x to 1.5x revenue)
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Indicated range (EBITDA method)
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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
Related tools for owners
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Field service report template
Test readings, parts, labor, and a customer sign-off line, ready to print as a PDF.
Keep the numbers when the job is booked
Inside Claver the same estimate becomes the quote you send, and the quote becomes the invoice you get paid on, so nobody retypes a price between the driveway and the bank.
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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.