SaaS Valuation 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.
Valuation = ARR × Revenue Multiple | Variable | Meaning |
|---|---|
ARR | Annual recurring revenue. |
Revenue Multiple | Market revenue multiple for comparable SaaS companies. |
Worked example
- ARR
- $2,000,000
- Revenue Multiple
- 8
- → Valuation
- $16,000,000
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What Valuation measures
Valuation is the estimated enterprise or equity value of a SaaS company, often informed by revenue multiples, growth, efficiency, and market conditions.
Prepare your inputs
- Verify the recurring revenue base and date. Keep one-time work and unsigned pipeline outside ARR.
- Choose a range of explicitly labeled multiples from an appropriate methodology or your own scenario assumptions. Record whether the resulting value is enterprise or equity value.
- Calculate the range, then examine the effect of cash, debt, transaction terms, and dilution where relevant. Keep those adjustments outside the simple ARR multiplication.
Formula
Valuation = ARR × Revenue Multiple | Variable | Meaning |
|---|---|
ARR | Annual recurring revenue. |
Revenue Multiple | Market revenue multiple for comparable SaaS companies. |
Check the sample calculation
Worked example
- ARR
- $2,000,000
- Revenue Multiple
- 8
- → Valuation
- $16,000,000
Before using the result
- Sample multiples are illustrative and should not be presented as today’s market pricing.
- Do not treat ARR as annual profit or use a profit multiple with it.
- Share-class rights, earn-outs, transaction expenses, and other terms can make proceeds differ from a simple value estimate.
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 Valuation 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.
- SaaS Capital: What’s Your SaaS Company Worth?
Why choosing an applicable multiple requires company and market context.
Found an error or a definition that differs from your reporting? Send a correction with the page URL and the method you use.