SaaS Valuation Calculator
Estimate your SaaS or software company's valuation instantly. Enter your key metrics and get a valuation range, revenue multiple breakdown, and actionable insights to increase your exit value.
Anshu PatelARR = $600,000 (MRR × 12)
Also called Net Dollar Retention (NDR). 100% = flat, >100% = expanding revenue from existing customers.
SaaS benchmark: 70–85%. Includes hosting, support, and COGS.
% of customers who cancel each month. Best-in-class SaaS: <1%/month.
Negative values are common for high-growth SaaS. Used to calculate your Rule of 40 score (growth % + EBITDA %).
Estimated Valuation
ARR of $600K × 7.5× multiple
Estimated Range
$3.6M
$4.5M
$5.4M
Low · Mid · High (±20% around midpoint)
ARR
$600K
annual recurring
Multiple
7.5×
revenue multiple
Rule of 40
45
✓ Passing
$600K ARR × 7.5× = $4.5M
How Your Multiple Was Calculated
Below Mkt
1–3×
Market
3–7×
Above Mkt
7–12×
Premium
12×+
What's Driving & Dragging Your Valuation
Strong growth at 60% YoY ARR
Excellent NRR of 110% — existing customers are expanding
High gross margin (75%) — efficient unit economics
Rule of 40 score of 45 — healthy balance of growth and profit
Your Key SaaS Metrics at a Glance
Annual Churn
16.6%
< 10% good
Rule of 40
45
≥ 40 good
NRR
110%
≥ 100% good
Gross Margin
75%
≥ 70% good
ARR Growth
60%
≥ 40% good
Monthly Churn
1.5%
≤ 1% good
SaaS Valuation Multiple Benchmarks (2024)
| Profile | Growth | NRR | Multiple |
|---|---|---|---|
| Distressed / Declining | < 10% | < 90% | 1–3× |
| Slow Growth | 10–20% | 90–100% | 3–5× |
| Solid Growth | 20–40% | 100–110% | 5–8× |
| High Growth | 40–80% | 110–120% | 8–15× |
| Hypergrowth / Elite | 80%+ | 120%+ | 15–30× |
Sources: Bessemer Venture Partners, Battery Ventures, OpenView SaaS Benchmarks 2024. Public market multiples shown — private company deals typically apply a 20–30% discount.
How to Increase Your Valuation Multiple
Accelerate ARR growth
Growth rate is the single biggest driver. Moving from 20% to 60% YoY can nearly double your multiple. Invest in sales, marketing, and product-led growth before pursuing an exit.
Push NRR above 110%
NRR above 110% signals that your existing customers expand faster than they churn — a 'land and expand' engine that dramatically de-risks the business for acquirers.
Reduce monthly churn below 1%
High churn is a red flag. Focus on onboarding quality, customer success, and product stickiness. Each 1% reduction in monthly churn can add 1–2× to your multiple.
Improve your Rule of 40 score
If you're burning cash, make sure it's reflected in the growth rate. Reduce discretionary spend, improve gross margin, or cut underperforming channels to get closer to 40.
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How This Calculator Works
Enter Your SaaS Metrics
Input MRR, growth rate, NRR, gross margin, churn, and EBITDA margin. All inputs are used simultaneously to calculate your multiple.
ARR Multiple Method Applied
Starting from a 5× base multiple (median public SaaS), five independent adjusters add or subtract based on your metrics vs. benchmarks.
Valuation Range & Insights
Get a low/mid/high range (±20%), a full multiple breakdown, a strengths/weaknesses analysis, and specific steps to improve your multiple before exit.
Frequently Asked Questions
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