{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-earnings","api_url":"https://dealroom.so/api/public/glossary/owner-earnings","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"owner-earnings","term":"Owner earnings","group":"Reading the business","definition":"Casual term for SDE or adjusted EBITDA — the yearly cash an owner-operator takes out.","what_it_means":"Owner earnings is an informal term, not a precise accounting measure — which means sellers sometimes use it loosely. When you see it in a listing, ask whether it means SDE (with the owner's salary added back) or adjusted EBITDA (without). The difference matters because those two numbers can diverge significantly depending on how the seller is compensated. Always reconcile the number to the tax returns and bank statements.","url":"https://dealroom.so/glossary/owner-earnings","official_sources":[],"related":[{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"cash-flow-after-debt-service","term":"Cash flow after debt service","url":"https://dealroom.so/glossary/cash-flow-after-debt-service"}],"related_questions":[{"question":"Can a business's retained earnings count as equity injection?","url":"https://dealroom.so/sba-loans/basics/can-a-business-s-retained-earnings-count-as-equity-injection"},{"question":"Can I use my business's retained earnings from a prior venture as equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-my-business-s-retained-earnings-from-a-prior-venture-as-equity-injection"},{"question":"Are non-owner spouses always required to personally guarantee SBA loans?","url":"https://dealroom.so/sba-7a/questions/are-non-owner-spouses-always-required-to-personally-guarantee-sba-loans"},{"question":"How does the SBA guarantee primarily benefit me as the business owner?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-guarantee-primarily-benefit-me-as-the-business-owner"},{"question":"Are there any specific training or experience requirements for the business owner?","url":"https://dealroom.so/sba-loans/basics/are-there-any-specific-training-or-experience-requirements-for-the-business-owner"},{"question":"What does a 'personal guaranty' mean for me as a business owner?","url":"https://dealroom.so/sba-loans/basics/what-does-a-personal-guaranty-mean-for-me-as-a-business-owner"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Owner earnings","url":"https://dealroom.so/glossary/owner-earnings","source_type":"DealRoom Data"}}