Accounting Revenue Multiple (Monthly) Calculator Examples
Worked monthly revenue multiple scenarios for accounting firms, including debt, surplus cash, and annual revenue multiple conversions.
These worked scenarios show how the same monthly revenue multiple method can produce different owner-value estimates when revenue scale, debt, cash, and selected multiples change. Each result is an illustrative estimate rather than a sale-price prediction.
Established bookkeeping practice with debt
A bookkeeping firm earns $25,000 per month of recurring fees and tests a 12x monthly revenue multiple.
Input Summary
Monthly revenue
$25,000
Monthly revenue multiple
12x
Business debt
$40,000
Surplus cash
$10,000
Calculation Breakdown
- 1Annualized revenue$25,000 × 12$300,000
- 2Enterprise value$25,000 × 12$300,000
- 3Debt and cash adjustment$300,000 − $40,000 + $10,000$270,000
Result Summary
Debt and cash adjustment
$270,000
Accounting Revenue Multiple (Monthly) Calculator
The indicative enterprise value is $300,000 and the indicative equity value is $270,000.
Small solo tax practice with no debt
A solo accounting practice earns $8,000 each month and uses a conservative 8x monthly revenue multiple.
Input Summary
Monthly revenue
$8,000
Monthly revenue multiple
8x
Business debt
$0
Surplus cash
$0
Calculation Breakdown
- 1Annualized revenue$8,000 × 12$96,000
- 2Enterprise value$8,000 × 8$64,000
- 3Equity value$64,000 − $0 + $0$64,000
Result Summary
Equity value
$64,000
Accounting Revenue Multiple (Monthly) Calculator
The indicative enterprise and equity values are both $64,000.
Growing advisory firm with surplus cash
The firm earns $60,000 per month, tests an 18x monthly multiple, has $150,000 of debt, and includes $75,000 of surplus cash.
Input Summary
Monthly revenue
$60,000
Monthly revenue multiple
18x
Business debt
$150,000
Surplus cash
$75,000
Calculation Breakdown
- 1Annualized revenue$60,000 × 12$720,000
- 2Enterprise value$60,000 × 18$1,080,000
- 3Debt and cash adjustment$1,080,000 − $150,000 + $75,000$1,005,000
Result Summary
Debt and cash adjustment
$1,005,000
Accounting Revenue Multiple (Monthly) Calculator
The indicative enterprise value is $1,080,000 and the indicative equity value is $1,005,000.
Comparing two multiples for the same firm
A firm with $35,000 monthly recurring revenue compares a 10x and 14x monthly revenue multiple.
Input Summary
Monthly revenue
$35,000
Lower monthly revenue multiple
10x
Higher monthly revenue multiple
14x
Debt and surplus cash
$0 net adjustment
Calculation Breakdown
- 1Annualized revenue$35,000 × 12$420,000
- 2Value at 10x monthly revenue$35,000 × 10$350,000
- 3Value at 14x monthly revenue$35,000 × 14$490,000
- 4Difference$490,000 − $350,000$140,000
Result Summary
Difference
$140,000
Accounting Revenue Multiple (Monthly) Calculator
The indicative value ranges from $350,000 at 10x to $490,000 at 14x monthly revenue.
How to Read Your Results
Enterprise value is the estimate before debt and surplus cash adjustments.
Equity value is the simplified estimate of value available to owners after subtracting debt and adding included surplus cash.
Annualized revenue is monthly revenue multiplied by 12; it is a run-rate figure, not necessarily reported annual revenue.
Divide the monthly revenue multiple by 12 to compare it with an annual revenue multiple.
A higher multiple increases the estimate linearly when all other inputs remain unchanged.
Assumptions & Important Notes
- Each example treats monthly revenue as recurring and sustainable.
- Debt is treated as interest-bearing debt that reduces owner value.
- Cash is included only where it is assumed to be surplus to operating needs.
- The examples exclude tax, transaction costs, working capital, and other deal terms.
Related Examples
Frequently Asked Questions
Why do these examples use monthly revenue rather than annual revenue?
The calculator is designed around a monthly revenue multiple. Annualized revenue is shown separately to make the monthly multiple easier to compare with annual revenue measures.
What happens if the business has more debt than enterprise value?
The simplified equity value calculation can become negative. That result indicates the stated debt exceeds the calculated enterprise value before considering other deal terms.
Can I use a range of monthly multiples?
Yes. Running lower and higher multiples can show how sensitive the estimate is to the valuation assumption.
Why might two firms with similar revenue have different multiples?
Differences in retention, profitability, growth, client concentration, team depth, service mix, and buyer demand can affect how a multiple is assessed.
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