SaaS Valuation Calculator
Quickly and accurately calculate the value of your SaaS company using industry benchmarks, financial metrics, and proven valuation models.
How it works
Understanding the Formula
The SaaS Valuation Calculator uses the formula: Valuation = 2 x ARR + ARR x (1 + 2.5 x Growth Rate). This combines your current revenue and growth potential for an accurate estimate.
Input your SaaS company's ARR
Enter your annual recurring revenue (ARR), which represents the predictable revenue your company generates annually from subscriptions.
Enter your growth rate
Provide the expected growth rate of your business, ideally a percentage that reflects past performance or forecasted growth.
Receive your valuation
The calculator combines your ARR and growth rate to generate an estimated valuation for your business, crucial for both investors and founders.
Expected Results
Estimated Business Value
Receive a calculated value reflecting your company's worth based on your ARR and growth rate input, providing a solid starting point for discussions.
Growth Impact
See how your growth rate amplifies your valuation, highlighting the importance of growth strategies in maximizing your business's value.
Insight into Business Worth
Get a snapshot of your business's market valuation to understand how investors, potential buyers, or partners might perceive your value.
Actionable Financial Planning
Use the valuation result to better plan future investments, funding rounds, or exit strategies based on realistic expectations.
Use Cases
For Founders Seeking Investment
Estimate the current worth of your business to help in negotiations with investors, ensuring the company is priced appropriately based on its growth potential and recurring revenue model.
For SaaS Acquisitions
Assess the price range for acquiring a SaaS business. Guide fair price negotiations, especially when growth rates are high and ARR is significant.
For Mergers and Partnerships
Determine an equitable exchange value based on recurring revenue and growth trajectories when considering mergers or partnerships between SaaS companies.
For Financial Forecasting
Make strategic decisions about expansion, hiring, or major investments by understanding your company's current financial standing and future potential.