Seller's Discretionary Earnings Calculator

The Seller's Discretionary Earnings is a financial metric used to evaluate the earnings of a business by adding back non-operational or discretionary expenses to the net income and is represented as SDE = PTI+OS+NIE+D&A+DE+NRE or Seller Discretionary Earnings = Pre-Tax Income+Owner's Salary+Net Interest Expenses+Depreciation and Amortization+Discretionary Expenses+Non Recurring Expenses. Pre-Tax Income is the bottom-line profit of the business after deducting all operating expenses, taxes, and interest, Owner's Salary is the compensation paid to the owners for their role in the business, Net Interest Expenses represents the interest paid on loans or other forms of debt, Depreciation and Amortization are accounting methods used to allocate the cost of tangible and intangible assets over their useful lives, Discretionary Expenses refer to non-essential expenses that are not directly tied to the day-to-day operations of a business & Non Recurring Expenses are one-time or irregular expenses that are not expected to occur in the future or are not directly related to the core operations of the business.