How much do small business owners make?
By Josh Elberg, founder of Palavir · Published · Updated
Palavir is a Michigan data and automation consultancy.
Short answer
We cannot measure what owners take home, but we can show what businesses for sale report. The middle US listing with a clear price and profit states $166,680 of yearly profit (1,809 listings). That is the seller's own figure and it often includes the owner's pay, so it is not passive income. After an assumed loan, the middle of each listing's own result is $82,724 a year left before tax.
How does yearly profit change with price?
- under $100,000$24,720
- $100,000 to $250,000$70,080
- $250,000 to $500,000$134,504
- $500,000 to $1 million$232,055
- $1 million to $2 million$398,070
- $2 million to $5 million$700,000
- $5 million and up$1,706,648
| Asking price band | Listings | Middle yearly profit | Price in years of profit | Left after assumed loan |
|---|---|---|---|---|
| under $100,000 | 249 | $24,720 | 1.97x | $17,589 |
| $100,000 to $250,000 | 303 | $70,080 | 2.40x | $46,540 |
| $250,000 to $500,000 | 375 | $134,504 | 2.66x | $82,735 |
| $500,000 to $1 million | 343 | $232,055 | 2.97x | $137,850 |
| $1 million to $2 million | 231 | $398,070 | 3.35x | $200,735 |
| $2 million to $5 million | 208 | $700,000 | 4.10x | $259,254 |
| $5 million and up | 100 | $1,706,648 | 5.23x | $422,440 |
under $100,000
- Listings
- 249
- Middle yearly profit
- $24,720
- Price in years of profit
- 1.97x
- Left after assumed loan
- $17,589
$100,000 to $250,000
- Listings
- 303
- Middle yearly profit
- $70,080
- Price in years of profit
- 2.40x
- Left after assumed loan
- $46,540
$250,000 to $500,000
- Listings
- 375
- Middle yearly profit
- $134,504
- Price in years of profit
- 2.66x
- Left after assumed loan
- $82,735
$500,000 to $1 million
- Listings
- 343
- Middle yearly profit
- $232,055
- Price in years of profit
- 2.97x
- Left after assumed loan
- $137,850
$1 million to $2 million
- Listings
- 231
- Middle yearly profit
- $398,070
- Price in years of profit
- 3.35x
- Left after assumed loan
- $200,735
$2 million to $5 million
- Listings
- 208
- Middle yearly profit
- $700,000
- Price in years of profit
- 4.10x
- Left after assumed loan
- $259,254
$5 million and up
- Listings
- 100
- Middle yearly profit
- $1,706,648
- Price in years of profit
- 5.23x
- Left after assumed loan
- $422,440
Profit rises with price at every band. The middle profit margin stays between 24% and 29% from $250,000 up, so more profit mostly means more sales.
Is this what the owner takes home?
Not exactly. Brokers quote SDE (seller's discretionary earnings): profit before paying the owner, plus perks and some one-off costs. If the owner works full time, that number is the owner's pay for the job and the return on the business together. It is also the seller's own claim, which we have not audited. See SDE vs EBITDA.
What is left after a loan and a manager?
Take the 949 clean US listings asking $250,000 to under $2 million. The middle one asks $600,000 and states $200,427 of profit. On the assumed loan the payments are about $87,883 a year. The middle of each listing's own result is a little different from the result for the middle listing:
- After the loan: about $112,350 a year.
- After also paying a $60,000 manager (an illustration we chose): about $52,350.
- 79% of the 949 listings still stay above zero.
Put in your own numbers in the savings calculator. To see how rarely listings state the owner's hours, read semi-absentee businesses.
What do different kinds of business report?
Highest middle profit first. IT / software services ($340,000), trades / field service ($311,424) and staffing / recruiting ($270,851) report the most. Amazon seller and content / media report the least. Margin (profit as a share of sales) tells the other half: content / media keep 87% of sales as profit, staffing / recruiting keep 7%. Types with fewer than 20 clean listings (other online and consulting / training) are too few to read and are left out.
| Business type | Listings | Middle yearly profit | Middle margin |
|---|---|---|---|
| IT / software services | 37 | $340,000 | 36% |
| Trades / field service | 173 | $311,424 | 24% |
| Staffing / recruiting | 31 | $270,851 | 7% |
| Marketing / web agency (local) | 38 | $202,312 | 33% |
| Other local businesses | 713 | $201,501 | 25% |
| Insurance agency | 27 | $183,170 | 47% |
| Property services | 49 | $174,000 | 27% |
| Accounting / finance services | 35 | $173,469 | 46% |
| Food / hospitality | 70 | $146,334 | 18% |
| SaaS / software | 58 | $114,720 | 70% |
| Online agency / service | 28 | $91,050 | 46% |
| Ecommerce (DTC) | 266 | $79,020 | 31% |
| Mobile app | 31 | $76,680 | 52% |
| Amazon seller | 106 | $76,134 | 21% |
| Content / media | 110 | $50,868 | 87% |
IT / software services
- Listings
- 37
- Middle yearly profit
- $340,000
- Middle margin
- 36%
Trades / field service
- Listings
- 173
- Middle yearly profit
- $311,424
- Middle margin
- 24%
Staffing / recruiting
- Listings
- 31
- Middle yearly profit
- $270,851
- Middle margin
- 7%
Marketing / web agency (local)
- Listings
- 38
- Middle yearly profit
- $202,312
- Middle margin
- 33%
Other local businesses
- Listings
- 713
- Middle yearly profit
- $201,501
- Middle margin
- 25%
Insurance agency
- Listings
- 27
- Middle yearly profit
- $183,170
- Middle margin
- 47%
Show all 15 rowsShow fewer
Property services
- Listings
- 49
- Middle yearly profit
- $174,000
- Middle margin
- 27%
Accounting / finance services
- Listings
- 35
- Middle yearly profit
- $173,469
- Middle margin
- 46%
Food / hospitality
- Listings
- 70
- Middle yearly profit
- $146,334
- Middle margin
- 18%
SaaS / software
- Listings
- 58
- Middle yearly profit
- $114,720
- Middle margin
- 70%
Online agency / service
- Listings
- 28
- Middle yearly profit
- $91,050
- Middle margin
- 46%
Ecommerce (DTC)
- Listings
- 266
- Middle yearly profit
- $79,020
- Middle margin
- 31%
Mobile app
- Listings
- 31
- Middle yearly profit
- $76,680
- Middle margin
- 52%
Amazon seller
- Listings
- 106
- Middle yearly profit
- $76,134
- Middle margin
- 21%
Content / media
- Listings
- 110
- Middle yearly profit
- $50,868
- Middle margin
- 87%
How much do HVAC, plumbing and landscaping owners make?
People search for these trades by name. We matched words in listing titles only, and the counts are small, so read them as a rough range, not an average for the trade.
- HVAC: $323,030 middle yearly profit, from 20 listings with a clear price and profit.
- Plumbing: $342,221 middle yearly profit, from 38 listings with a clear price and profit.
- Landscaping: $257,071 middle yearly profit, from 20 listings with a clear price and profit.
In a trade business the owner often runs jobs or sells them. When that owner leaves, the profit figure has to cover the cost of someone doing it.
What this data cannot tell you
- These are asking prices, not the prices businesses sold for.
- Profit is the seller's own figure. It often includes the owner's pay, so someone still has to do that work.
- It is a snapshot of listings from October 2026, not a survey of all businesses.
- Businesses for sale are not all businesses. Owners who do badly may not be selling, and some sellers pick a good year.
- The figure is before tax, stock and closing costs. Loan terms and the manager salary are our assumptions.
- Keyword groups match listing titles only. Groups under 20 clean listings are not shown as findings.
Have a listing? We check it free.
Questions about what owners make
How much do small business owners make?
We cannot measure what owners take home, but we can show what businesses for sale report. Among 1,809 US listings with a clear price and profit (out of 3,928 collected in October 2026), the middle yearly profit is $166,680. That is the seller's own figure and it often includes the owner's pay, so it is not what an extra hire or an investor would earn.
Is a business's profit the same as the owner's income?
No. Listings often quote SDE (seller's discretionary earnings): profit before paying the owner, plus the owner's perks. If the owner works full time, the profit figure is partly pay for that job. A buyer who hires a manager has to pay that salary out of the same number.
How much do HVAC business owners make?
Listings with HVAC in the title state a middle profit of $323,030, from only 20 listings with a clear price and profit, so treat it as a rough guide. Plumbing is $342,221 (38 listings). These are seller-stated figures, often include the owner's pay, and match title words only.
How much do landscaping business owners make?
Listings with landscaping in the title state a middle profit of $257,071, from only 20 listings with a clear price and profit. That is too few to rely on. The figure often includes the owner's pay, and the owner often works the crews.
How much is left for a buyer after paying the loan?
On an assumed loan (90% of the price over 10 years at 10%), the middle of each US listing's own result is about $82,724 a year left before tax, and 89% of listings state profit of at least 1.25 times the loan payments (our rough test, not a lender's). That is before a manager, tax and any change in sales. The loan terms are our assumption, not a lender quote.
Do bigger businesses make a higher margin?
No. The middle profit margin stays between 24% and 29% in every price band from $250,000 up. Bigger businesses make more dollars because they have more sales, and they ask more years of profit: 1.97 under $100,000 and 5.23 at $5 million and up.
Sources and method
Palavir Deal Scout: businesses-for-sale listings collected in October 2026 from nine marketplaces and brokers. 3,928 US listings; 1,809 have a clear price and profit, with repeats, ranges, sold listings and near-identical template listings from broker networks removed. Middle values of ratios are worked out listing by listing. Of all 6,104 listings (US, UK and other countries), 954 had financials we judged implausible and are left out. Loan terms and the manager salary are Palavir assumptions.
General information, not financial, legal or lending advice.