Discretionary Earnings
Another name for the owner’s total financial benefit from a small business, closely related to SDE.
Last updated September 5, 2026
Discretionary earnings (DE) means the profit plus owner compensation and discretionary or personal expenses a full-time owner could redirect. Many brokers use DE and SDE interchangeably; SDE is the more standardized Main Street label. Definitions still differ on whether a manager wage or market rent has been deducted. Always ask for the recast schedule behind the headline number.