SaaS Valuation Calculator
Estimate what your SaaS is worth on a revenue multiple. Enter ARR and year-over-year growth — optionally net revenue retention — to get a growth-adjusted valuation and range.
Customer Acquisition Cost (CAC)
How much you spend, on average, to win one new customer.
Customer Lifetime Value (LTV)
The total gross profit you earn from an average customer before they churn.
LTV : CAC Ratio
The single most-watched SaaS efficiency number. 3:1 is the healthy benchmark.
MRR & ARR
Monthly and annual recurring revenue from your customer base.
Churn Rate
The percentage of customers you lose in a period — and the lifetime it implies.
Customer Retention Rate
The percentage of customers you kept, excluding new ones you added.
SaaS Valuation
A revenue-multiple estimate. Faster growth earns a higher multiple.
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How SaaS Valuation Works
Two companies at $600k ARR can be worth wildly different amounts. One growing 100% a year might command a 9–10× multiple ($5–6M); one growing 10% might see 2–3× ($1.2–1.8M). Growth is the dominant lever.
What Moves the Multiple
| YoY growth | Rough ARR multiple |
|---|---|
| Under 15% | ~2–3× |
| 25–50% | ~4–6× |
| 50–100% | ~6–8× |
| 100%+ | ~8–12× |
Then adjust: net revenue retention (NRR) above 110% pushes the multiple up (existing customers grow on their own); below 100% pulls it down. Gross margin, TAM, and market conditions move it further.
The Rule of 40
Investors sanity-check growth against profitability with the Rule of 40: growth rate + profit margin should exceed 40%. It stops "growth at any cost" from inflating a valuation that unit economics can't support. Pair it with a healthy LTV : CAC and low churn and the multiple holds up under diligence.
Built and tested by Alston Antony — AI SEO strategist, 500+ SaaS tools reviewed, 15,000-member lifetime-deal community. Free founder tooling, no analytics seat required.
Frequently Asked Questions
How is a SaaS company valued?
Private SaaS is usually valued on a multiple of ARR (annual recurring revenue). The multiple is driven mostly by growth rate — faster growth earns a higher multiple — and adjusted for retention, margins, and market size. A company at $1M ARR growing 100% might see a 8–12× multiple; one growing 10% might see 2–3×.
What is a typical SaaS valuation multiple?
It varies widely with growth and market conditions, but a rough private-SaaS guide: ~2–3× ARR for slow growth (under ~15%), ~4–6× for moderate (25–50%), and ~7–12× for high growth (50%+). Strong net revenue retention (110%+) pushes multiples higher; weak retention pulls them down. Public-market shifts move the whole range.
Should I value on ARR or profit?
Most venture-scale and mid-market SaaS is valued on ARR multiples, not profit, because reinvestment for growth suppresses near-term profit intentionally. Very small, profitable, slow-growing SaaS is sometimes valued on an SDE or EBITDA multiple instead. This calculator uses the ARR-multiple approach common to growth SaaS.
What is the Rule of 40?
The Rule of 40 says a healthy SaaS company's growth rate plus profit margin should exceed 40%. A company growing 60% at −15% margin (net 45) passes; one growing 20% at 5% margin (net 25) does not. It's a quick sanity check on whether growth is being bought at a sustainable price, and investors use it alongside the ARR multiple.
Is this valuation calculator accurate?
It's a directional estimate, not an appraisal. Real valuations weigh margins, retention, TAM, competitive moat, team, and current market appetite — none of which a formula fully captures. Use it to ballpark and to understand what drives the number, then get professional advice for an actual transaction.