Startup Valuation Calculator
Estimate your startup’s valuation and investor equity in seconds. Built for founders to make smarter fundraising decisions based on revenue, industry, and growth trajectory.
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FAQs
What Does the Startup Valuation Calculator Do?
It estimates your startup’s current valuation based on Monthly Recurring Revenue (MRR), industry type, and growth rate and shows how much equity an investor would receive for a given investment.
How Is the Valuation Calculated?
The formula used is: Valuation = MRR × 12 × Industry Multiple × Growth Factor It converts your MRR to annual revenue, applies an industry-standard revenue multiple, and adjusts for growth momentum.
What Is MRR and Why Is It Important?
MRR (Monthly Recurring Revenue) represents predictable subscription-based revenue. It’s a key metric for valuing startups with recurring income models.
How Do I Choose The Right Industry Multiple?
Choose the industry that best fits your business (e.g., SaaS, FinTech). Each industry has a typical revenue multiple used by investors to benchmark valuation.
How Does the Growth Rate Affect My Valuation?
Higher growth rates increase your valuation through a Growth Factor Multiplier. For instance, high-growth startups (over 100% YoY) might receive a 1.3× boost to their base valuation.
What Does the Equity Percentage Output Mean?
It tells you how much of your company an investor would own based on their investment. Formula: (Investment ÷ Valuation) × 100
Can I Use This Calculator for Pre-Revenue Startups?
Not ideal. This tool is best for startups with revenue. Pre-revenue companies should use valuation methods like the Scorecard or Milestone-Based approach.
Is the Valuation Shown Suitable for Investor Discussions?
Yes, it’s a reliable starting point. While not a certified valuation, it reflects investor-standard logic used in early-stage negotiations.
Can I Manually Adjust the Industry Multiple or Growth Factor?
Not currently. The calculator applies standard values automatically. Future versions may allow for manual overrides for advanced users.
Will This Work on Mobile Devices?
Yes! The Calculator Is Fully Responsive, So You Can Use It On Any Mobile Device With Real-Time Updates And Input Handling Optimized For Smaller Screens.
