EBITDA & SDE Calculator
Normalise your reported earnings the way buyers do. Add back interest, tax, depreciation, owner perks, and one-offs to get the EBITDA / SDE figure your business will actually be valued on.
Your reported P&L
From your most recent full financial year (ZAR).
Add-backs (normalisations)
SDE-style adjustments most buyers accept with supporting documentation. Enter the excess only (e.g. R800k owner salary on a R400k market rate → add back R400k).
All figures stay confidential.
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Common questions
What is EBITDA?
EBITDA = Earnings Before Interest, Tax, Depreciation, and Amortisation. It's the profitability metric most buyers and lenders use because it strips out financing structure and accounting choices, giving a cleaner view of operating performance.
What is the difference between EBITDA and SDE?
SDE (Seller's Discretionary Earnings) is EBITDA plus the owner's full salary and discretionary perks. SDE is typically used for smaller owner-operated businesses (under ~R20m revenue), while EBITDA is the standard for mid-market and larger transactions. This calculator handles both — the add-backs section captures the owner-specific items.
Which add-backs do buyers actually accept?
Standard, defensible add-backs include: above-market owner compensation, documented one-off costs (legal, restructuring, COVID), personal expenses run through the business, and above-market related-party rent. Buyers will scrutinise each one, so keep supporting documentation. Aggressive add-backs (regular travel, "growth investment", non-recurring revenue) usually get rejected.
What EBITDA multiple should I expect in South Africa?
For owner-managed SA businesses, 3×–6× normalised EBITDA is the typical range. Tech, healthcare, and recurring-revenue businesses command 5×–8×. Trades, retail, and cyclical businesses sit at 2.5×–4×. The midpoint band used here (3.5×–5.5×) reflects a representative SA mid-market range.