Product-service systems (PSS) have been regarded as a promising business model to achieve sustainable production and consumption. Recent research and practice suggest the need for tools to help companies integrate sustainability into the development of PSS. The purpose of this paper is to present a Sustainable Value Analysis Tool (SVAT), and provide empirical evidence for the development and use of the tool. The tool builds on a multi-disciplinary literature analysis and qualitative data from five Chinese manufacturing companies. It is developed to assist manufacturing companies in identifying opportunities for sustainable value creation in the process of PSS development. The use of the tool in an industrial context is illustrated.