Owner Earnings Calculator
How much cash is left after maintaining the business?
1. Enter your figures
Where do I find these numbers?
Start with annual earnings and cash-flow disclosures, then separate maintenance spending from expansion spending. Explain noncash adjustments and required working capital. If maintenance spending is not disclosed, use a reasoned range.
Example units: Fictional mature business. All inputs are CAD millions for one year; maintenance spending is estimated as a range.
2. Understand the result
Enter all 6 figures, or try the example.
3. Keep your research
Complete the figures above to save a calculation.
Saves in this browser. Sign in from the account menu to sync research across devices.How the calculation works
Net income + appropriate noncash adjustments − maintenance capital − additional working capital. Yield = owner earnings ÷ equity value.
Worked example
Fictional mature business. All inputs are CAD millions for one year; maintenance spending is estimated as a range.
- Owner earnings range
- 90 to 120 million/year
- Owner earnings yield range
- 9% to 12%
The estimated owner earnings range is CAD 90 million to CAD 120 million, or 9% to 12% of the CAD 1 billion equity value. More maintenance spending produces the lower earnings estimate.
Where to find your figures
Start with annual earnings and cash-flow disclosures, then separate maintenance spending from expansion spending. Explain noncash adjustments and required working capital. If maintenance spending is not disclosed, use a reasoned range.
Inputs are supplied by you. These calculations support research; they do not estimate a guaranteed return or recommend a trade.