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Goodwill Calculation Calculator

Work out goodwill calculation instantly with clear inputs, formula shown and shareable results.

About Goodwill Calculation Calculator

Goodwill is the residual: consideration transferred, plus any non-controlling interest and contingent consideration, less the fair value of identifiable net assets acquired. A high goodwill share means most of what you bought is unidentifiable — brand, workforce, expected synergies — and therefore exposed to impairment.

Formulas

Goodwill

Goodwill = (Consideration + Contingent consideration + NCI) - Fair value of identifiable net assets

Goodwill share

Share % = Goodwill / Total consideration x 100

Worked example

With the default values below, Goodwill Calculation Calculator returns Goodwill recognised of $5,500,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Purchase consideration
12,000,000
Fair value of identifiable net assets
8,500,000
Non-controlling interest recognised
1,200,000
Fair value of contingent consideration
800,000

Results

Goodwill recognised
$5,500,000.00
Total consideration including NCI
$14,000,000.00
Fair value of net assets acquired
$8,500,000.00
Goodwill as % of consideration
39.29%

Step by step

  1. 1Values used
  2. 2Goodwill
  3. 3Goodwill share
  4. 4Goodwill recognised= 5,500,000.00
  5. 5Total consideration including NCI= 14,000,000.00
  6. 6Fair value of net assets acquired= 8,500,000.00
  7. 7Goodwill as % of consideration= 39.29

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative purchase-price-allocation illustration. Actual goodwill depends on a full fair value exercise, intangible identification and framework requirements. Not accounting advice.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative purchase-price-allocation illustration. Actual goodwill depends on a full fair value exercise, intangible identification and framework requirements. Not accounting advice.

Frequently Asked Questions

Can goodwill be negative?

Yes — a bargain purchase. Under IFRS you reassess the fair values first, then recognise any remaining gain in profit or loss.

Is goodwill amortised?

Not under IFRS: it is tested for impairment annually. Some local GAAPs do require amortisation over a capped life.

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