Tools › SDE calculator

FREE TOOL · NO ACCOUNT

SDE calculator: work back to the number the price is built on

Start from the tax return or the P&L, add back only what you can stand behind, and see how much of the listing's SDE rests on the seller's word. Pure arithmetic. Nothing is stored.

Pre-fill with example numbers so you can see what the tool does before typing your own

Clear all example numbers to add your own

1 · Start from the documents

Where the starting number comes from is itself a status

Net income (or loss)

The bottom line before any add-back

As shown on

Supported — a document backs the starting number

Asking price(optional)

Unlocks the implied multiples below

Revenue(optional)

SDE the listing states(optional)

So the tool can show you where the listing's number lands

2 · Mark each add-back by what stands behind it

One line per add-back, one status per line

Owner's salary

Ask for: W-2 or payroll register

Owner's payroll taxes & benefits

Ask for: Payroll tax filings, benefits invoices

Depreciation

Ask for: Tax return schedule / fixed-asset ledger

Amortization

Ask for: Tax return schedule

Interest

Ask for: Loan statements, GL interest account

One-time expenses

Ask for: The invoice, and the prior two years' GL for the same account

Personal expenses run through the business

Ask for: GL detail for the account + receipts

Family members on payroll

Ask for: Payroll register, hours, replacement cost

Rent adjustment (related-party lease)

Ask for: Lease, market-rent comparison

SUPPORTED · I have the document CLAIMED · the seller says so, nothing in hand MISSING · a figure I'd expect and haven't been given

3 · Compare supported SDE with stated SDE

Same inputs, sorted by what you can stand behind

Supported SDE

—

Starting number + supported add-backs only

Stated SDE

—

Starting number + every add-back claimed

The gap

—

0% of stated SDE

Enter a starting number and mark your add-backs to see the three figures.

Your inputs, your arithmetic. Supported means a document backs the figure — it is not verification, audit, or assurance. Not financial advice, not a valuation.

VERITY BRAIN · ANALYSIS

Verity does this on the documents themselves.

Upload the listing, the returns, and the P&L — every figure traced to its source page, every contradiction surfaced as a question. First analysis of every deal is free.

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