Sale price by true earnings
Likely sale price of a cleaning business at 1.8 to 2.8 times SDE.| Owner's true earnings (SDE) | Likely sale price |
|---|
| $40,000 | $72,000 to $112,000 |
| $60,000 | $108,000 to $168,000 |
| $80,000 | $144,000 to $224,000 |
| $120,000 | $216,000 to $336,000 |
| $160,000 | $288,000 to $448,000 |
Source: BizBuySell valuation multiples by industry. SDE is profit plus the owner's pay plus personal and one-time expenses the business pays for.
What moves a cleaning business up or down the range
- Recurring contracts. Commercial accounts on written agreements are worth more than one-off residential jobs, because a buyer can see next year's revenue.
- Crews that run without you. If you still clean, or you are the only one who schedules and quotes, the buyer is buying a job. Supervisors and a scheduling system move you up.
- Customer concentration. One account that is 40% of revenue scares buyers and lenders. Ten accounts at 4% each does not.
- Clean books. Cash jobs that never hit the return cannot be counted. Buyers and SBA lenders price from the tax returns.
- Vehicles and equipment included, owned rather than leased, with a simple list.
On revenue alone
Cleaning business sale price at 0.5 to 0.9 times annual revenue (a rougher check than SDE).| Annual revenue | Likely sale price |
|---|
| $150,000 | $75,000 to $135,000 |
| $300,000 | $150,000 to $270,000 |
| $500,000 | $250,000 to $450,000 |
| $800,000 | $400,000 to $720,000 |
Revenue multiples are a sanity check only. Two businesses with the same sales and different margins are worth very different amounts.
How to value your cleaning business
- Total your true earnings. Profit from the tax return, plus your salary, plus personal expenses run through the business (vehicle, phone, insurance), plus one-time costs. That is SDE.
- Apply the multiple. Multiply SDE by 1.8 and by 2.8. Place yourself in the range using contracts, crews and concentration.
- Check it against revenue. Multiply annual revenue by 0.5 and 0.9. If the two ranges disagree badly, your margins are unusually high or low, and the buyer will ask why.
- Prove it. Three years of tax returns, a contract list with start dates and monthly value, and a crew list. Buyers pay for what they can verify.
Sources
- BizBuySell, Business Valuation Multiples by IndustryBusinesses sold Q3 2021 through Q2 2026, updated biannually · Aggregated closed sales reported to BizBuySell over a trailing five-year periodFigures are averages of closed sales reported to one marketplace, US only. A marketplace sees the deals listed on it, not every sale in the country.
- US Small Business Administration, SOP 50 10: Lender and Development Company Loan ProgramsVersion 8 effective June 1, 2025; version 8.1 effective October 1, 2026For a 7(a) loan that funds a complete change of ownership, the buyer must inject at least 10% of total project cost. A seller note can count toward up to half of that only if it is on full standby (no payments) for the life of the SBA loan. SBA revises this SOP; confirm the current rule with the lender.
YourBizWorth is not a broker, appraiser, or law firm. This guide is general information, not legal, tax, or lending advice.
Questions people ask
Is a commercial cleaning business worth more than a residential one?
Usually, for the same earnings, because commercial accounts are on contracts and residential clients can cancel any week. A residential business with a high rebooking rate and a full schedule still sells well; it just needs to show the retention.
Can I sell just my cleaning contracts?
Some owners sell the customer list and contracts without vehicles or staff, usually to a competitor, for a lower multiple. It is faster, but you leave the equipment and the goodwill value behind.
Can a buyer get an SBA loan for a cleaning business?
Yes, if the tax returns support the price and the buyer puts in at least 10% of the project cost. A seller note on full standby can count toward half of that injection.
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