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What Is My Restaurant Worth?
Get an instant estimate using the same 1.5×–3× SDE method brokers actually use — factoring in your books, lease, condition, and market.
Also called SDE — net profit plus your own pay, benefits, and one-time add-backs. Price is built on this, not revenue.
Estimated value range
Enter your annual profit to see an estimate
Estimates are for general guidance only and don't constitute a formal business valuation, appraisal, or offer. Actual sale price depends on verified financials, the lease, market conditions, and buyer demand. Break-even or unprofitable? Value is driven by assets and real estate instead — read the guide.
How restaurant valuation works
Most profitable independent restaurants sell for a multiple of SDE — seller's discretionary earnings, which is your net profit plus your own pay, benefits, and one-time add-backs. Not a multiple of revenue. That range is typically 1.5× to 3× SDE, and where you land inside it is driven by four things:
- Clean, provable books. Buyers price what they can verify. Two to three years of P&Ls that reconcile with your POS push the multiple up; cash-heavy or messy records pull it down hard.
- The lease. A long, transferable lease at a workable rent is one of the most valuable things you own. A short lease — or one the landlord won't let you assign — can collapse the value regardless of earnings.
- Turnkey condition. Well-maintained equipment and a space a buyer can operate on day one is worth more than one that needs work.
- Location & market demand. A strong, growing market with real foot traffic earns a premium.
If you own the real estate and it's part of the deal, its value is added on top of the business value. For the complete method — including add-backs, what buyers scrutinize, and common pricing mistakes — read our restaurant valuation guide.
Frequently asked questions
How is a restaurant's value calculated?+
Most profitable independent restaurants sell for a multiple of SDE (seller's discretionary earnings — net profit plus the owner's salary, benefits, and one-time add-backs), generally in the 1.5×–3× range. The multiple is driven by how clean and provable the books are, how many transferable years are left on the lease at a workable rent, the location and market demand, whether real estate is included, and how turnkey the space and licensing are. Real estate, if owned and included, is added on top of the business value.
Is a restaurant valued on revenue or profit?+
Profit, not revenue. Pricing on 'we do a million in sales' is the fastest way to scare off informed buyers. Value is built on SDE — what the business actually earns for its owner — so two restaurants with identical revenue can be worth very different amounts depending on their margins and add-backs.
What is SDE (seller's discretionary earnings)?+
SDE is your net profit plus your own owner's pay and benefits, plus one-time or non-essential 'add-backs' a new owner wouldn't have to spend. It represents the total financial benefit the business provides to a single owner-operator, and it's the number a restaurant's sale price is built on.
Is this calculator an official appraisal?+
No. It's a free ballpark estimate to help you get oriented before you list or sell. Actual sale price depends on verified financials, the lease terms, current market conditions, and buyer demand. For a firm number, get a formal valuation from a broker or business appraiser — but this gets you in the right range fast.
How can I increase what my restaurant is worth?+
The biggest levers are clean, provable books (2–3 years that reconcile with POS), a long assignable lease at a workable rent, turnkey condition with well-maintained equipment, and a strong location. Improving any of these before you list moves your multiple toward the top of the 1.5×–3× range.
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