Revenue Multiple Calculator

Replace the sample values with your own, in one currency and one reporting period. Enter percentages as whole numbers: 2 for 2%. Calculations run in your browser.

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Illustrative calculation; verify inputs and assumptions before relying on it.

Revenue Multiple (× ARR)—

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Revenue Multiple = Valuation / ARR
Variable Meaning
Valuation Company valuation (enterprise value for public comparisons).
ARR Annual recurring revenue.

Worked example

Company Valuation
$16,000,000
ARR
$2,000,000
→ Revenue Multiple (× ARR)
8

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What Revenue Multiple measures

Published by 4NLab · Updated · Our methods

A revenue multiple divides a stated company value by a stated revenue measure. This calculator uses ARR; comparisons using trailing revenue or a different valuation basis must be reconciled first.

Prepare your inputs

  1. Write down what the company value represents: enterprise value or equity value, its measurement date, and its source.
  2. Choose the revenue basis. For this calculator, enter annual recurring revenue measured consistently at the relevant date.
  3. Divide value by ARR and label the output with both bases. Keep cash and debt adjustments separate and visible if converting between value definitions.

Formula

Revenue Multiple = Valuation / ARR
Variable Meaning
Valuation Company valuation (enterprise value for public comparisons).
ARR Annual recurring revenue.

Check the sample calculation

Worked example

Company Valuation
$16,000,000
ARR
$2,000,000
→ Revenue Multiple (× ARR)
8

Before using the result

  • The example multiple is hypothetical and is not a current market benchmark.
  • ARR and trailing recognized revenue can differ; label which one you use.
  • A zero ARR denominator provides no finite multiple. Pre-revenue businesses require another approach.

A dash means the result is undefined for the inputs, such as division by zero. Review the assumptions and input errors before interpreting it.

Read the Revenue Multiple guide for a business scenario, interpretation, and frequently asked questions.

Sources and methodology

The references below explain the underlying methods. Our worked scenarios use hypothetical figures; they are not company results or current market benchmarks.

Found an error or a definition that differs from your reporting? Send a correction with the page URL and the method you use.