Business Valuation Calculator
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SaaS Company Valuation Calculator

SaaS buyers usually start with recurring revenue quality. ARR, growth, churn, net revenue retention, gross margin, customer concentration, and product dependency all shape the multiple.

Key inputs

MRR, growth, churn, NRR, gross margin.

Custom model

SaaS / Software

Starting range

3x-10x revenue

SaaS valuation inputs

ARR multiple with retention, churn, growth, and margin adjustments

Recurring revenue

$

Current MRR from subscriptions.

%
%

Retention quality

%
%
%

Profit and balance sheet

$

Optional profit check for mature SaaS businesses.

$
$
Estimated Business Value
Valuation Estimate
$•••,•••
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This valuation is an estimate based on industry multiples and the information provided. Actual business valuations may vary based on numerous factors.

How to value a SaaS company

SaaS is commonly valued from recurring revenue for growth-stage companies and operating earnings for mature, profitable companies. This page defaults to a revenue multiple because that matches most SaaS search intent.

Calculator inputs

Use MRR or ARR as revenue, enter net profit if available, and use the growth input to reflect current expansion. For early SaaS, revenue multiples often matter more than current earnings.

Example estimate

A SaaS company with $600K ARR, healthy retention, and durable growth may screen from revenue first, then be pressure-tested against operating earnings, churn, and customer concentration.

What affects SaaS company valuation?

ARR/MRR scale, year-over-year growth, and payback period.

Gross margin, churn, net revenue retention, and expansion revenue.

Customer concentration, contract length, and market size.

Codebase quality, support burden, founder dependency, and product defensibility.

SaaS Company valuation FAQ

Should I use ARR or MRR for a SaaS valuation?

Use whichever period your records support. Monthly inputs are annualized by the calculator, so MRR becomes ARR for the valuation estimate.

Why do SaaS companies use revenue multiples?

Recurring revenue, high gross margins, and growth can make revenue a more useful screen than current profit, especially when the company is reinvesting.

When should SaaS use operating earnings instead?

Mature, slower-growth SaaS businesses with stable profitability are often checked against operating earnings because buyers care more about cash flow durability.

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