Business Valuation Calculator Based on Initial Investment

This calculator estimates business valuation based on initial investment, growth rate, and years of operation. Ideal for startup valuation, investment analysis, and financial planning.

Input Parameters

Calculation Results

Calculation Formula

Value = Σ [Initial Investment × (1 + Growth Rate)^t] + Terminal Value

Where:
- Initial Investment: Your starting capital
- Growth Rate: Annual growth percentage
- t: Year number
- Terminal Value: Future value after final year using terminal growth rate

Business Valuation:

$0.00

Terminal Value:

$0.00

Total Years:

0 years

Business Valuation Calculator Based on Initial Investment Calculator Usage Guide

Learn how to use the Business Valuation Calculator Based on Initial Investment calculator and its working principles

How to Use This Calculator

  1. Enter your initial investment amount (the starting capital you invested)
  2. Input the annual growth rate (percentage increase in business value per year)
  3. Specify the number of years the business has been operating
  4. The terminal growth rate is typically set between 2-5% (representing long-term growth)
  5. Click "Calculate" to see the estimated business valuation

Understanding the Results

The calculator provides three key outputs:

  • Business Valuation: The total estimated value of your business
  • Terminal Value: The value of your business at the end of the specified period
  • Total Years: The number of years used in the calculation

Important Considerations

This calculator uses a simplified perpetuity growth model. For more accurate business valuation, consider:

  • Different valuation methods like Discounted Cash Flow, Comparable Sales, or Asset-Based
  • Market conditions and industry benchmarks
  • Business risks and growth potential
  • Professional financial advisor consultation