SaaS Valuation Calculator

Estimate your SaaS company valuation using revenue multiples

Annual Recurring Revenue (ARR)

YoY Growth Rate50%

Annual Churn Rate5%

Profit Margin10%

Net Revenue Retention110%

Estimated Valuation Range

Low Estimate

$6,075,000

12.2x ARR

Mid Estimate

$8,100,000

16.2x ARR

High Estimate

$10,125,000

20.3x ARR

Rule of 40 Score

Excellent - Above the Rule of 40 benchmark

Note: This calculator provides rough estimates based on public SaaS company valuation multiples. Actual valuations depend on many factors including market conditions, TAM, team, and competitive landscape.

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Revenue Multiple Method

Uses industry-standard revenue multiples adjusted for growth, churn, profitability, and retention.

Rule of 40 Score

Automatically calculates your Rule of 40 score (growth rate + profit margin) used by investors.

Comprehensive Inputs

Accounts for ARR, growth rate, churn, profit margin, and net revenue retention for accurate estimates.

Valuation Range

Provides low, mid, and high estimates to give you a realistic range for your company valuation.

About This Calculator

SaaS company valuation typically relies on revenue multiples -- a factor applied to ARR based on growth rate, retention, profitability, and market conditions. This calculator estimates a valuation range for your SaaS business by combining your ARR with adjustment factors for growth rate, net revenue retention, churn, and profit margin. It uses publicly available median multiples from SaaS indices and adjusts them based on your specific metrics, giving you a realistic range rather than a single point estimate.

How to Use

Enter your current ARR (Annual Recurring Revenue) as the base for the valuation calculation.

Input your year-over-year revenue growth rate, monthly churn rate, and profit margin percentage.

Review the estimated valuation range, the implied revenue multiple, and how each factor contributes to or detracts from your valuation.

Frequently Asked Questions

What revenue multiple do SaaS companies trade at?

Public SaaS companies have historically traded between 5x and 20x ARR, though this range contracts and expands with market conditions. As of recent years, the median public SaaS multiple has been around 6-8x ARR. High-growth companies (over 40% YoY) with strong retention can command 15x or more, while slower-growth businesses may trade at 3-5x.

How does growth rate affect SaaS valuation?

Growth rate is the single largest driver of SaaS valuation multiples. Doubling your growth rate can more than double your multiple because investors pay a premium for compounding revenue. A company growing at 100% YoY might command 15-20x ARR, while the same company growing at 20% might only get 4-6x ARR.

Does this calculator work for private SaaS companies?

This calculator provides a directional estimate. Private SaaS companies typically trade at a discount to public multiples (often 20-40% lower) due to illiquidity, smaller scale, and higher risk. The result should be treated as a starting point for discussions, not a definitive valuation. Actual deal terms depend on negotiations, market timing, and strategic fit.