SaaS Valuation Calculator: What Is My SaaS Worth?
Estimate what your SaaS business could sell for. Free SaaS valuation calculator using ARR multiples adjusted for growth, churn, gross margin, and profitability.
Your business
An educational rule-of-thumb estimate, not financial advice or an appraisal.
Turn this into a shareable card →How SaaS businesses are valued
Most SaaS companies are valued as a multiple of revenue: either ARR (annual recurring revenue) or, for small profitable businesses, annual profit. Recurring revenue is predictable, so buyers pay more for a dollar of SaaS revenue than for a dollar of agency or e-commerce revenue.
Valuation ≈ ARR × revenue multiple
The work is in choosing the multiple. Buyers adjust it for the things that make future revenue more or less certain.
What moves the multiple
| Factor | Pushes the multiple up | Pushes it down |
|---|---|---|
| Growth | 50%+ year over year | flat or declining |
| Churn | under 2% monthly, NRR over 100% | over 5% monthly |
| Gross margin | over 80% | under 60% (heavy services or API costs) |
| Profitability | profitable, low owner involvement | burning cash |
| Concentration | many small customers | one customer is 30%+ of revenue |
| Size | over $1M ARR (more buyers compete) | under $50K ARR |
How this calculator estimates value
It's a rule-of-thumb model, not an appraisal:
- Base multiple from growth: declining 1.5×, 0–20% growth 3×, 20–50% 4.5×, 50–100% 6×, over 100% 8× ARR.
- Churn adjustment: +0.5× under 2% monthly churn, −1× above 5%.
- Margin adjustment: +0.5× above 80% gross margin, −1× below 60%.
- Profitability: +0.5× if profitable.
- Range: the result is shown as ±25% around the midpoint, clamped to 1×–12× ARR.
These bands roughly reflect what small and mid-size SaaS businesses have sold for on marketplaces and in private deals. Public company multiples are very different and change with markets.
Small SaaS: multiples of profit
Businesses under about $1M ARR are often sold on SDE (seller's discretionary earnings: profit plus the owner's salary) at 3–6× SDE, or roughly 2–5× ARR. Buyers of small SaaS care a lot about how many hours the owner works, because they're buying their own future job.
How to increase what your SaaS is worth
- Reduce churn. It improves the multiple and the ARR it multiplies. See how to reduce churn.
- Document everything. Clean metrics, a stable codebase, and written processes cut buyer risk.
- Diversify acquisition. A business that depends on one channel or one platform is discounted.
- Show a growth trend. Twelve months of steady growth beats a spike.
This is an educational estimate. Real valuations depend on deal terms, buyer type, market conditions, and diligence findings.
Frequently asked questions
How much is a SaaS business worth?
Small and mid-size SaaS businesses commonly sell for roughly 2–8× ARR depending on growth, churn, margins, and size. Very small businesses are often valued at 3–6× seller discretionary earnings (SDE) instead.
What is a good ARR multiple for SaaS?
For private bootstrapped SaaS, 3–5× ARR is common for steady businesses. Fast-growing companies with low churn and high margins can achieve 6–10× or more.
Does churn affect SaaS valuation?
Yes, heavily. High churn means a buyer has to replace revenue constantly, which lowers the multiple. Net revenue retention above 100% is one of the strongest drivers of a higher multiple.
Is this valuation accurate?
It is a rule-of-thumb estimate for education and planning. Actual offers depend on buyer type, deal structure, market conditions, and due diligence.