Seller’s Discretionary Earnings (SDE)
12 articles
Start here

How to Calculate SDE Without Lying to Yourself
The formula is easy. The judgment calls are where buyers get cooked. Here’s how to calculate seller’s discretionary earnings like an adult.
- Your Replacement-Salary Add-Back Prices the Owner at 17%. The Evidence Says 83%.August 31, 20269 min read
- SDE vs EBITDA: Which One Is a Small Business Actually Valued On?August 3, 20269 min read
- What Are Add-Backs in a Business Sale? A CPA's Guide to Which Ones SurviveAugust 3, 20269 min read
- What Is a Good SDE Multiple? Why the Number Is a Verdict, Not a BargainAugust 3, 20269 min read
- How Much Is a Business Worth With $500,000 in Revenue?June 1, 202611 min read
- How to Calculate SDE: Step-by-Step Formula with Add-Back ExamplesApril 19, 202610 min read
- What Is Normalized SDE? The Difference Between Broker and Lender EarningsApril 14, 20269 min read
- Does SDE Include Owner Salary?March 10, 20266 min read
- What Is SDE in Business? Meaning, Formula & Example (2026)March 10, 202610 min read
- Real Take-Home Pay After Buying a Small Business: SDE vs. Owner Cash Flow (Worked Example)January 27, 20269 min read
- How Brokers Inflate SDE: 4 Add-Back Tricks SBA Lenders Strip (2026)January 3, 20269 min read