SaaS Valuation Calculator
Calculate your SaaS company valuation based on key metrics like MRR, growth rate, and industry multiples.
Annual Recurring Revenue (ARR)
$1.2M
Based on $100k MRR
Company Valuation
$8.4M
7x ARR multiple
Your company's monthly recurring revenue
The multiple of ARR used for valuation (typically 5-10x)
Calculate your SaaS company's valuation using the industry-standard ARR (Annual Recurring Revenue) multiple method. This calculator helps you understand potential valuations based on your current MRR and typical market multiples.
How It Works
- Enter your Monthly Recurring Revenue (MRR)
- Select or input an ARR multiple
- The calculator will show your:
- Annual Recurring Revenue (ARR = MRR × 12)
- Company valuation (ARR × Multiple)
Understanding ARR Multiples
SaaS companies are often valued using a multiple of their Annual Recurring Revenue (ARR). The specific multiple typically depends on several factors:
Year-on-Year Growth Rate
- Higher growth rates typically command premium multiples
- Growth rate is often the primary driver of valuation
- Consistent growth more valuable than sporadic growth
- Forward growth projections impact current multiples
Gross Margin
- Higher margins often command higher multiples
Net Revenue Retention
- Strong expansion revenue can justify higher valuations
Market Size
- Larger addressable markets support higher multiples
Competition
- Market leadership position influences valuation
Unit Economics
- Efficient customer acquisition and strong LTV/CAC ratios
Limitations
This calculator provides a simplified valuation based solely on ARR multiples. Actual company valuations consider many additional factors:
- Cash position and burn rate
- Product-market fit
- Team composition
- Intellectual property
- Market conditions
- Competitive landscape
Tips for Improving Valuation
Focus on Growth
- Higher growth rates typically command higher multiples
Improve Retention
- Strong net revenue retention supports higher valuations
Optimize Unit Economics
- Better LTV/CAC ratios justify higher multiples
Increase Margins
- Higher gross margins often lead to better valuations
Build Moats
- Competitive advantages support premium valuations
Related Metrics
Growth Metrics
- Revenue Growth Rate Calculator - Calculate your growth rate to determine appropriate multiples
- CAGR Calculator - Understand your compound annual growth rate
Financial Metrics
- ARR Calculator - Calculate your Annual Recurring Revenue
- MRR Calculator - Track your Monthly Recurring Revenue
Efficiency Metrics
- LTV/CAC Calculator - Measure customer acquisition efficiency
- CAC Payback Calculator - Calculate how quickly you recover customer acquisition costs