SaaS valuation calculator
MRR and growth in, a valuation range out. Built on ARR multiples, with the caveats printed on the result instead of hidden in a footnote.
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How SaaS valuation multiples work
Small and mid-size SaaS businesses trade as a multiple of ARR, and growth moves that multiple more than any other single input. A shrinking business struggles to clear 2x; steady growers commonly land between 3x and 6x; genuinely fast growth pushes into the high single digits and beyond.
The bands this calculator uses are typical of private SaaS acquisitions and marketplace listings. They are a starting point for a conversation, not a promise: the same ARR can close at half or double the band depending on churn, margins, founder dependence and who is buying.
- Shrinking revenue: roughly 1x to 3x ARR
- Growing up to 25% a year: roughly 2x to 5x
- Growing 25% to 50%: roughly 3x to 6x
- Growing 50% to 100%: roughly 4x to 8x
- Doubling or more: 6x to 12x and negotiable
What moves you inside the band
Net revenue retention above 100% means the business grows without new sales, and buyers pay up for that. Low churn, high gross margins, diversified customers and revenue that does not depend on the founder all push toward the top of the band.
The opposite drags to the bottom: one customer holding a quarter of revenue, churn above 5% monthly, or a product only the founder can run. Clean metrics also matter in themselves; a buyer who can verify your MRR movements in minutes discounts less for uncertainty.
Frequently asked questions
Is this multiple applied to ARR or profit?
ARR. Very small or slow-growing SaaS businesses sometimes trade on profit (SDE) instead, where multiples run higher on a much smaller base. This calculator uses ARR multiples, the convention for growing subscription businesses.
Why does growth matter more than size?
A buyer is paying for future revenue, and growth compounds: at 100% a year, revenue doubles before the deal even settles in. That is why a $500k ARR business doubling yearly can be worth more than a flat $2M one.
Is this an appraisal or financial advice?
Neither. It is an educational estimate from public rules of thumb. A real valuation needs your churn, margins, retention and a buyer, and a real transaction needs advisors.
What is the fastest way to raise my multiple?
Reduce churn. It raises growth, raises net revenue retention and de-risks the future revenue a buyer is paying for, all three at once. Clean, verifiable metrics are the cheapest second lever.
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