LEAR
Back to calculations
Seller Discretionary Earnings illustration

Real Estate · Valuation

Seller Discretionary Earnings

Preview

The calculator is free to use. A subscription unlocks saving deals, one-click PDF reports, and your full project history.

Subscribe to unlockCompare plans

Run any calculator for free. Subscribe to save results, export branded reports, and sync across web and mobile. Billing via PayPal.

Use SDE when evaluating owner-operated real estate services or mixed business-property opportunities.

Browse all calculators

Interactive workbench

Owner-operated earnings

Net Income + Owner Salary + Discretionary Expenses + One-Time Expenses

The adjusted seller discretionary earnings equal $310,000.

Check your inputs before you rely on the result — calculations are informational only and depend entirely on the numbers you enter. See our Terms.

Variables and units

  • Net Income

    Reported net income.

    currency

  • Owner Salary

    Owner compensation add-back.

    currency

  • Discretionary Expenses

    Personal or discretionary add-backs.

    currency

  • One-Time Expenses

    Nonrecurring expenses.

    currency

Common mistakes

  • Adding back expenses that a buyer will still incur.
  • Counting the same add-back twice.

Step-by-step example

Owner-operated earnings

The adjusted seller discretionary earnings equal $310,000.