Finance

Goodwill Calculator

Calculate the goodwill generated in a business acquisition (premium over net asset value).

Purchase Price ($)

Fair Value of Total Assets ($)

Fair Value of Total Liabilities ($)

Formula:
Net Assets = Fair Value of Assets − Fair Value of Liabilities
Goodwill = Purchase Price − Net Assets
Negative Goodwill = "Bargain Purchase"

What is Goodwill?

Goodwill represents the intangible value of a business — brand reputation, customer relationships, proprietary technology, skilled workforce — that causes the buyer to pay more than the book value of net assets.