Restaurant Valuation Calculator

Looking for a way to estimate a restaurant’s valuation? Estimating a restaurant’s valuation manually can be confusing, so we have built a Restaurant Valuation Calculator to help you. The calculator asks for a few input fields and runs the calculations behind the scenes to give you an estimated valuation.

Keep reading, we cover:

• What is a Restaurant Valuation Calculator?
• How a Restaurant Valuation Is Calculated?
• A real-world example

What is a Restaurant Valuation Calculator?

The Restaurant Valuation Calculator is a simple yet powerful tool that helps investors, buyers, and restaurant owners estimate the market value of a restaurant business. 

The calculator asks for a few inputs such as Annual Revenue, SDE (Seller’s Discretionary Earnings) Margin, Years in Business, Revenue Growth (YoY), Location Quality, and Asset Value (equipment & fixtures) — these inputs let the calculator’s logic estimate the valuation accurately.

Remember: this tool does not replace a professional appraisal. It provides an estimated, data-driven ballpark value to help you understand a restaurant’s worth.

How a Restaurant Valuation Is Calculated?

The calculator uses standard multipliers and formulas to estimate valuation from the factors you provide. Below is a simple real-world example that shows exactly how a restaurant’s valuation is calculated:

Real-World Example

Inputs:

• Annual Revenue = $750,000
• SDE Margin = 12%
• Years in Business = 3
• Revenue Growth (YoY) = 0%
• Location Quality = 3 (average)
• Asset Value = $180,000

Step 1: Calculate Annual SDE

• 750,000 × 12% = $90,000

Step 2: Revenue-Based Value

• 750,000 × 0.50 = $375,000

Step 3: SDE-Based Value

• 90,000 × 2.2 = $198,000

Step 4: Asset-Based Value

• = $180,000

Step 5: Weighted Adjustment (Years, Growth, Location)
The calculator blends revenue-based, SDE-based, and asset-based values using weights. After adjustment:

• Final Valuation = $239,550

Estimated Restaurant Value = $239,550
(≈ 31.94% of Annual Revenue)