Goodwill Calculator

Estimate goodwill by comparing the purchase price with the fair value of identifiable net assets.

The calculator also shows the net identifiable asset value and the goodwill percentage of the purchase price.

Goodwill Result

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Run the calculation to see the goodwill value.

Quick Answer

Goodwill is the purchase price minus the fair value of the net identifiable assets. Net identifiable assets are assets minus liabilities.

How to Calculate Goodwill

  1. Enter the purchase price.
  2. Enter the fair value of assets and liabilities.
  3. Click Calculate.
  4. Review goodwill and the net asset value.

Formula

Net identifiable assets = fair value of assets - fair value of liabilities

Goodwill = purchase price - net identifiable assets

Worked Examples

Example 1: 150,000 purchase price, 200,000 assets, and 50,000 liabilities create zero goodwill.

Example 2: A higher purchase price than net assets creates positive goodwill.

Example 3: A lower purchase price can create negative goodwill or a bargain purchase.

How to Interpret Your Results

ResultMeaningAction
Positive goodwillThe buyer paid above the fair value of the net assetsReview synergies, brand value, and customer base
Zero goodwillPurchase price matches net identifiable assetsReview assumptions carefully
Negative goodwillPurchase price is below the net asset valueCheck for bargain purchase accounting treatment

Frequently Asked Questions

It is the fair value of the assets minus the fair value of the liabilities.

Cash is part of the fair value of assets if it is included in the acquisition balance sheet.

Accounting treatment depends on the reporting framework and jurisdiction.

Related Calculators

Detail About Goodwill Calculator

This page helps with acquisition math by turning purchase price and net asset data into a goodwill estimate.

References