Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Estimated practice value
$2,365,000
Adjusted EBITDA
$430,000
EBITDA margin
19.5%
Implied revenue multiple
1.07
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How to use this
- 1Enter annual revenue ($).
- 2Enter reported net income ($).
- 3Enter owner compensation paid ($).
- 4Enter fair-market replacement doctor pay ($).
- 5Enter other add-backs (interest, d&a, discretionary) ($).
- 6Enter ebitda multiple.
- 7Read your estimated practice value on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
Veterinary practice sales are usually priced off a multiple of adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, with owner compensation normalized to fair market doctor pay), not off top-line revenue. This calculator normalizes owner-related add-backs into EBITDA, applies a market multiple you choose based on deal size and buyer type, and returns an estimated enterprise value plus a revenue-multiple cross-check. Independent single-doctor practices commonly trade at 4-6x EBITDA; multi-doctor practices with strong systems and consolidator interest can reach 7-9x, while corporate platforms sometimes pay double-digit multiples for scale and real estate combined.
Worked example
Using the values the calculator loads with:
Inputs
- Annual revenue: 2200000 $
- Reported net income: 280000 $
- Owner compensation paid: 260000 $
- Fair-market replacement doctor pay: 170000 $
- Other add-backs (interest, D&A, discretionary): 60000 $
- EBITDA multiple: 5.5
Results
- Estimated practice value: $2,365,000
- Adjusted EBITDA: $430,000
- EBITDA margin: 19.5%
- Implied revenue multiple: 1.08
What each field means
Inputs
- Annual revenue ($)
- The annual revenue used in the calculation, measured in $. Starts at 2200000 $ so you have a working example on load.
- Reported net income ($)
- The reported net income used in the calculation, measured in $. Starts at 280000 $ so you have a working example on load.
- Owner compensation paid ($)
- The owner compensation paid used in the calculation, measured in $. Starts at 260000 $ so you have a working example on load.
- Fair-market replacement doctor pay ($)
- The fair-market replacement doctor pay used in the calculation, measured in $. Starts at 170000 $ so you have a working example on load.
- Other add-backs (interest, D&A, discretionary) ($)
- The other add-backs (interest, d&a, discretionary) used in the calculation, measured in $. Starts at 60000 $ so you have a working example on load.
- EBITDA multiple
- The ebitda multiple used in the calculation. Starts at 5.5 so you have a working example on load. Accepted range: 1–15.
Results
- Estimated practice value
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Adjusted EBITDA
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- EBITDA margin
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Implied revenue multiple
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why subtract a market-rate doctor salary if I'm the owner?
A buyer will need to hire a replacement doctor at fair market pay to do the work you currently do as owner. Adjusted EBITDA reflects what the practice earns after paying a real doctor salary, which is the cash flow a buyer actually receives, not the inflated number you get by leaving owner pay at zero.
What multiple should I use?
Single-doctor practices under $1.5M revenue often trade 3-5x; multi-doctor practices $2M-$5M with good systems commonly see 5-7x; larger, well-documented practices with growth trends can reach 7-9x from private equity-backed consolidators. Real estate, if included, is valued separately.
Does this include real estate if I own the building?
No. This values the practice's operations only. If you own the real estate, it's typically valued separately via appraisal or cap-rate analysis and either sold with the practice or leased back to the buyer under a separate agreement.
How accurate is a multiple-based estimate?
It's a reasonable planning-stage estimate, not a substitute for a formal valuation. Actual deals also weigh growth trend, payer/case mix, staff retention, lease terms, and competitive buyer interest, any of which can move the final multiple up or down half a turn or more.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Veterinary Practice Valuation Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/vet-practice-valuation-multiple
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/vet-practice-valuation-multiple" target="_blank" rel="noopener">Veterinary Practice Valuation Calculator — RevenueLab</a> (2026).</p>
Source: [Veterinary Practice Valuation Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/vet-practice-valuation-multiple) (2026).