SaaS Valuation Calculator
Estimate your company's valuation
What is SaaS Valuation?
SaaS valuation estimates what a software company is worth, typically expressed as a multiple of its annual recurring revenue. The multiple varies based on growth rate, retention, profitability, and broader market conditions.
The multiplier applied to a company's ARR to estimate its valuation. Higher growth and retention command higher multiples.
Annual Recurring Revenue, the primary revenue metric used as the base for SaaS valuation calculations.
The percentage of recurring revenue retained from existing customers after accounting for upgrades, downgrades, and churn. Above 100% means existing customers are spending more over time.
The year-over-year percentage increase in revenue, one of the strongest drivers of valuation multiples in SaaS.
Multiply annual recurring revenue by the appropriate multiple to estimate the company's total enterprise value.
Higher growth and retention rates command higher multiples, while strong profitability can further increase the multiple applied.
Three steps.No guesswork.
Enter your key metrics
Input your annual recurring revenue, year-over-year growth rate, and net revenue retention.
Calculate valuation range
The calculator applies market-based revenue multiples to produce low, mid, and high estimates.
Review your estimate
See your estimated valuation range and the revenue multiples applied based on your growth profile.
Built for founderswho move fast.
Fundraising preparation
Enter negotiations with a data-backed understanding of what your company might be worth.
Equity planning
Use valuation estimates to structure employee stock option grants and equity splits.
Exit planning
Model potential acquisition valuations based on current metrics and growth trajectory.
How SaaS companies are valued
SaaS companies are typically valued as a multiple of their Annual Recurring Revenue (ARR). The multiple depends on growth rate, net revenue retention, gross margins, and market conditions. Faster-growing companies with strong retention command higher multiples.
Public SaaS multiples have ranged from 5x to over 50x ARR depending on market conditions and company performance. In 2024, median public SaaS multiples are around 6-8x ARR, with top performers trading at 15x or higher.
For private companies, apply a discount of 20-40% to public multiples to account for illiquidity. The Rule of 40 — where growth rate plus profit margin should exceed 40% — is another widely used benchmark. Companies exceeding it typically command premium valuations.
Common questionsanswered.
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