No black box, here is the exact math
You should be able to check any number we show you. This page sets out what the calculator asks, how it works out your estimate, and where its limits are.
Quick answers
How is a MedSpa valued?
Buyers multiply annual profit by a multiple. Smaller, owner-run clinics are usually valued on Seller's Discretionary Earnings (SDE); larger clinics with a full clinical team are valued on EBITDA. Our calculator uses annual revenue × your profit margin as the profit figure.
What multiple does the calculator use for a MedSpa?
Three tiers: about 3.5x SDE (range 3.2x–3.8x) under $1M in revenue or when the owner carries most of the revenue; 5.0x EBITDA (4.5x–5.5x) from $1M to $2.5M with a full clinical team; and 6.5x EBITDA (6.0x–7.5x) from $2.5M. These are working benchmarks, not offers.
What is the $1M "Graduation Zone"?
The revenue level, about $1M a year, at which institutional buyers start valuing a clinic as a business rather than as the owner's job, provided a Medical Director and two or more providers carry the revenue.
What is a worked example?
A clinic at $75,000 a month with a 20% margin earns $180,000 a year. At 3.5x SDE that is about $630,000. Adding 10 restoration packages a month at $3,000 lifts profit to $396,000 and crosses $1M in revenue, so the estimate rises to about $2,178,000.
6 questions, about 60 seconds
Footprint & market
Your clinic name, location and number of active treatment rooms.
Revenue & margin
Monthly gross revenue and roughly what percentage is left as net profit, or 20% if you're not sure.
Key-person risk
How much revenue would keep running for 60 days if you stepped away from treating patients.
Modalities
The skin-tightening and collagen-restoration treatments you already offer.
Patient database
Roughly how many past-patient contacts sit in your booking software.
Your goal
Explore a buyout now, grow first and sell for more, or keep the clinic and step back.
The formula, step by step
| Figure | How it's calculated |
|---|---|
| Annual revenue | Monthly revenue × 12 |
| Annual profit | Annual revenue × your margin: 12%, 18%, 25% or 30%, or 20% if you're not sure |
| Tier 1 · 3.5x SDE | Under $1M revenue, or under 60% of revenue would continue without you. Range 3.2x–3.8x |
| Tier 2 · 5.0x EBITDA | $1M to $2.5M revenue with a full clinical team and Medical Director. Range 4.5x–5.5x |
| Tier 3 · 6.5x EBITDA | $2.5M+ revenue with a full clinical team. Range 6.0x–7.5x |
| Optimized value | Adds 10 packages a month at $3,000 and a 60% margin. The multiple expands +2.0x if the new revenue crosses a tier line, otherwise +1.5x |
Calculated by the same code as the calculator. Not a real clinic.
What this estimate is, and what it isn't
It is
A fast benchmark from your own answers, useful for deciding whether a closer look is worthwhile and which levers matter most.
It isn't
An appraisal, a broker's opinion of value or an offer. A buyer will look at your actual financials, adjust them and reach their own number.
Our multiple tiers are benchmarks
They are the working assumptions used in this tool. Real offers vary with location, growth, compliance, deal structure and the buyer.
Projections assume capacity
The optimized value assumes your clinic has the demand, providers and rooms to deliver 10 more packages a month. Results are not guaranteed.
Go deeper
What EBITDA Multiple Is a MedSpa Actually Worth?
Valuation comes down to two numbers, your adjusted EBITDA and a multiple. Here is what moves each one, and how to read any multiple you see quoted.
Valuation & MultiplesHow to Calculate Your MedSpa's Adjusted EBITDA
Buyers don't price your tax return. They price normalized earnings. Here is how to estimate adjusted EBITDA, and which add-backs tend to get challenged.
Team & Owner DependencyThe Owner-Injector Problem: Making Your Clinic Less Dependent on You
If patients come for you, a buyer sees risk. Here is a practical way to reduce owner production without losing the patients you've built.