how much is your
SaaS worth?
enter your ARR, growth rate, churn, and margin. get an estimated valuation range using revenue multiples tailored to your company profile — bootstrapped or funded.
How to use this SaaS valuation calculator
Enter your Annual Recurring Revenue (ARR), year-over-year growth rate, monthly churn rate, and gross margin. Select whether you're bootstrapped or VC-funded, and indicate if you're currently profitable. The calculator applies a revenue multiple based on these factors and shows you a low, mid, and high valuation estimate.
This is an estimate based on typical market multiples, not a formal valuation. Use it to get a ballpark for planning purposes — whether you're considering selling, raising money, or just curious about where your business stands.
How SaaS valuation works
SaaS valuation is fundamentally about the quality and predictability of your revenue. Unlike traditional businesses valued on profits or assets, SaaS companies are valued on recurring revenue because it compounds. A customer paying $50/month today is expected to generate $600/year — and if your churn is low, that revenue continues for years.
The multiple applied to your ARR reflects the market's confidence in your future growth. Higher multiples go to companies with fast growth (>50% YoY), low churn (<3% monthly), high gross margins (>80%), and strong net revenue retention (>100%). The funding environment also matters — multiples compress during market downturns.
Valuation benchmarks for indie SaaS
Here's what typical revenue multiples look like for bootstrapped SaaS companies selling on marketplaces like Acquire.com, MicroAcquire, or through brokers:
- <$500K ARR: 2–4× ARR. Buyers want proof of concept.
- $500K–1M ARR: 3–5× ARR. Meaningful revenue, likely profitable.
- $1M–5M ARR: 4–8× ARR. Premium for growth and low churn.
- >$5M ARR: 5–10×+ ARR. Strategic value, often PE or strategic acquirer interest.
Profitability adds a significant premium for bootstrapped companies — often 1–2× more than comparable unprofitable businesses.