The Digital Marketing Agency Valuation Calculator helps agency owners estimate how much their business could sell for by considering the most relevant financial and qualitative factors that influence valuation in today’s market.

How the Calculator Works

You’ll enter a series of key data points about your agency. The calculator will apply typical industry multiples, adjusting for risk and advantages, to output a best-practice valuation estimate—plus an explanation of how it was reached.

Explanation of Each Field

• Annual Revenue ($):

  • Enter your agency’s total gross income for the most recent full year.

  • Use: This reflects your agency’s sales volume, but the actual valuation will rely more on profit metrics like EBITDA.

• Annual EBITDA ($):

  • Input your Earnings Before Interest, Taxes, Depreciation, and Amortization for the year. This represents your agency’s operational profitability.

  • Use: EBITDA is the key number multipliers are applied to, reflecting the true buying power of your business.

• Location:

  • Select your main country or region of operation (USA/Canada, UK/Europe, Australia/NZ, or Other).

  • Use: Agencies in premium markets (like the US) typically receive higher valuation multiples due to greater demand and earning capacity.

• Types of Services:

  • Check all services your agency regularly provides (such as SEO, PPC, Social Media, Content Marketing, Web/Creative).

  • Use: A broader service mix can raise your valuation by showing diversification and the ability to serve more client needs.

• Recurring Revenue (% of total):

  • Enter what percentage of your revenue currently comes from retainer contracts or renewable, ongoing agreements.

  • Use: Higher recurring revenue makes your agency less risky, raising the multiple applied and resulting in a higher valuation.

• Top Client Share (% of revenue):

  • Specify what percent of your total revenue comes from your single largest client.

  • Use: Lower dependence on any single client decreases risk, leading to a higher valuation multiple. High concentration lowers value due to the risk of losing substantial revenue if that client leaves.

Understanding Your Valuation Result

After submitting your info, the calculator provides:

• Estimated Agency Value:
  The likely market price range if you were to sell your agency, calculated using a multiple of EBITDA and adjusted for your qualitative answers.

• Result Breakdown:
  A step-by-step explanation—showing base EBITDA multiples, how each input impacts your agency’s value (like boosting multiples for strong recurring revenue, or reducing them for heavy client concentration), plus the final math.

• Industry Multiples Reference:
  Most digital agencies sell for between 3–7x EBITDA in developed markets, depending on performance, uniqueness, risk, and financial health.

Note:
This estimate is a market-based benchmark—true sale value can vary based on precise financial diligence, industry trends, agency reputation, and negotiation.