Finance · Business & Commerce

Seller’s Discretionary Earnings Calculator

Calculate seller's discretionary earnings from entered owner and business adjustments.

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Quick guide

How to use this calculator

  1. Enter only the business amounts, rates, counts, or operating assumptions named by the fields.
  2. Keep currencies, reporting periods, quantities, and accounting classifications consistent.
  3. Review the formula and calculator-specific limitations before using the result in a decision.

Calculation method

Calculation method

SDE = pretax profit + owner compensation + interest + depreciation + amortization + entered discretionary add-backs.

Fixed-decimal arithmetic remains exact through display unless a result is explicitly labelled approximate, such as a square-root inventory quantity.

Worked example

Worked example

Pretax profit 100, owner pay 80, interest 10, depreciation 15, amortization 5, and add-backs 20 give SDE of 230.00.

SDE = pretax profit + owner compensation + interest + depreciation + amortization + entered discretionary add-backs.

Supported inputs

Precision and limits

Visible input limits

Fixed decimals accept up to 30 digits and 12 decimal places and are capped at an absolute value of 1e12 per input. Rates are capped at 1000%; percentage shares and method-specific domains may be narrower.

International scope

No currency, tax jurisdiction, accounting framework, payroll rule, marketplace fee schedule, financing term, or industry benchmark is selected automatically.

Decision boundary

Results are arithmetic scenarios from visitor-entered assumptions, not accounting records, forecasts, valuations, legal interpretations, professional advice, or recommendations.

Calculator-specific assumptions

The calculator does not determine whether an add-back is recurring, supportable, transferable, or acceptable to a buyer, lender, tax authority, or accounting framework.