Quickly estimate your SaaS company’s value using ARR and growth rate.Built for founders, buyers, and investors using industry-standard valuation multiples.
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It estimates your company’s market value by multiplying your Annual Recurring Revenue (ARR) by an ARR multiple, which is determined based on your growth rate and assumed unit economics.
ARR is the total predictable yearly revenue from subscriptions. It’s calculated by taking your Monthly Recurring Revenue (MRR) and multiplying it by 12.
Formula: ARR = MRR × 12
An ARR multiple is a number used to estimate a company's value based on revenue. It reflects factors like growth, retention, profitability, and market conditions. Higher growth typically means a higher multiple.
The calculator selects a multiple based on your inputted growth rate and general SaaS benchmarks. Faster-growing companies receive higher multiples, while slower growth results in more conservative estimates.
Boost your ARR through expansion or retention, increase your growth rate, improve your LTV/CAC ratio, and focus on consistent subscription revenue all of which impact your ARR multiple positively.
Currently, the calculator automatically assigns a multiple based on your growth rate. Future versions may support custom inputs for more advanced users or investor-specific scenarios.
ARR multiples vary by market conditions, but a typical SaaS business may have a multiple between 3x and 8x. High-growth or niche-leading companies can exceed 10x, while slower growth may lower it to 2x or less.
This calculator gives a reliable ballpark estimate based on industry norms. For formal investment rounds or exits, it's best to validate with investor feedback or professional financial advisors.
Not directly. It assumes healthy SaaS unit economics (like solid LTV/CAC and gross margin). You should factor in those metrics separately for a full valuation picture.
This tool is best for startups with recurring revenue. For pre-revenue companies, you may want to use a different model like the Scorecard, VC Method, or Milestone-Based Valuation.
