# Goodwill Calculator

URL: https://speedycalculator.com/calculators/finance/goodwill/
Last updated: 2026-10-25

> The goodwill calculator works out the goodwill created in an acquisition – the purchase price minus the fair value of the identifiable net assets acquired – including any non-controlling interest.

## Inputs

- Purchase price
- Fair value of identifiable assets
- Fair value of liabilities
- Non-controlling interest

## Results

- Fair value of net assets
- Goodwill
- Goodwill as a share of the price

## Formula

```
Fair value of net assets = fair value of assets − fair value of liabilities
Goodwill = purchase price + non-controlling interest − fair value of net assets
```

## Explanation

Goodwill represents brand, customer relationships and expected synergies. It isn't amortized under IFRS or U.S. GAAP for public companies but is tested yearly for impairment. Negative goodwill (a bargain purchase) is recognised as a gain.

### How to use the Goodwill Calculator

- **Purchase price**
- **Fair value of identifiable assets**
- **Fair value of liabilities**
- **Non-controlling interest**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the purchase price, the fair value of identifiable assets and liabilities, and any non-controlling interest.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterPurchase priceAmount in your currencyFair value of identifiable assetsAmount in your currencyFair value of liabilitiesAmount in your currencyNon-controlling interestAmount in your currency

### What each result means

- **Fair value of net assets** = [Fair value of identifiable assets] - [Fair value of liabilities]
- **Goodwill** = [Purchase price] + [Non-controlling interest] - [Fair value of net assets]
- **Goodwill as a share of the price** = [Goodwill]÷[Purchase price]×100

### Example values

How the main result changes when **Purchase price** changes and everything else stays at the example values above:

Purchase priceGoodwill2,500,000-1,000,0003,750,000250,0005,000,0001,500,0006,250,0002,750,0007,500,0004,000,00010,000,0006,500,000

## Worked example

Inputs — Purchase price: $5,000,000; Fair value of identifiable assets: $6,000,000; Fair value of liabilities: $2,500,000; Non-controlling interest: $0.

Results — Fair value of net assets = $3,500,000.00; **Goodwill = $1,500,000.00**; Goodwill as a share of the price = 30 %.

## FAQ

**What is goodwill?**
The premium paid over the fair value of a company's identifiable net assets.

**Is goodwill amortized?**
Not under IFRS or U.S. GAAP for public companies – it's tested for impairment.

**What is negative goodwill?**
A bargain purchase, recorded as a gain.

**What formula does the Goodwill Calculator use?**
Fair value of net assets = fair value of assets − fair value of liabilities.


## Sources

- [IFRS – IFRS 3 Business combinations](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-3-business-combinations/)