Get a ballpark value for your RIA or advisory practice from published market multiples. Enter your revenue and profit, answer 4 quick questions about the quality of your book, and see where you likely land.
It uses 2 methods and shows both, because buyers and valuation firms use both.
Revenue method. Recurring revenue is valued at 2.0x to 4.0x, the typical RIA range reported by Advisor Legacy as of August 2025. Non-recurring revenue is valued at 0.5x to 1.0x [benchmark estimate], since it has to be earned again each year. Your quality score decides where in each range you land.
EBITDA method. Adjusted EBITDA is valued at 5.0x to 9.0x, the range Advisor Legacy gives for healthy advisory firms. Your quality score sets the point in that range too.
Revenue method = Recurring revenue × (2.0 to 4.0) + Non-recurring × (0.5 to 1.0)
EBITDA method = Adjusted EBITDA × (5.0 to 9.0)
Quality score (0 to 100), 20 points each [benchmark estimate]:
- Recurring share of 80% or more
- Client retention of 95% or more
- Revenue growth of 10% or more
- Top 10 clients under 25% of revenue
- EBITDA margin of 30% or moreThe score thresholds are our estimate of what buyers reward. They aren't a published standard, so treat the result as a starting point for a conversation with a valuation firm.
| Factor | Why buyers pay more |
|---|---|
| Recurring, fee-based revenue | It renews each year without new selling |
| High client retention | Clients stay through a change of ownership |
| Steady growth | The book is getting bigger, and new clients keep arriving |
| Spread across many clients | Losing 1 client doesn't sink the deal |
| Strong margins | More of each dollar reaches the buyer |
Retention and revenue mix take years to change. Growth can move faster. Every new client on an advisory fee adds recurring revenue, which this calculator values at 2 to 4 times its annual amount.
Most practices still grow mainly through referrals. Adding a steady flow of prospects from search is one of the few ways to grow without asking clients for more introductions. Our guide to SEO for financial advisors explains how, and our financial advisor marketing plan template shows where it fits.
This calculator gives an estimate for planning. It is not a formal valuation or financial advice.
Most practices are valued as a multiple of revenue, a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization), or both. Advisor Legacy puts typical RIA revenue multiples at 2.0x to over 4.0x as of August 2025, and EBITDA multiples for healthy firms at 5.0x to 9.0x. Where a practice lands depends mostly on the quality of its revenue.
A practice with mostly recurring, fee-based revenue, loyal clients, steady growth and strong margins sits toward the top of the range. A practice that relies on one-time commissions, an aging client base or 1 or 2 large clients sits toward the bottom.
A buyer is paying for future cash flow. Advisory fees billed on assets tend to renew every year. Commissions have to be earned again with each sale. As Advisor Legacy puts it, a practice with 90% fee-based, recurring revenue from long-term clients is far more valuable than one that relies on one-time commissions.
It is profit before interest, taxes, depreciation and amortization, adjusted so the owner is paid a market salary and one-time costs are removed. Many owner-advisors take most profit as salary, which makes the practice look less profitable than it would under a buyer.
No. It gives a ballpark range from published market multiples. A sale, a partner buy-in or an estate plan needs a formal valuation from a firm that reviews your books, client data and contracts.
New clients who find you through search add recurring revenue, which is what buyers pay the most for. We help advisory firms rank for the searches their ideal clients make. Ask for a free audit of your site.
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