Free · Startup calculator

SaaS Valuation Calculator

Get a valuation range from your ARR, growth rate and margin — presented as a range, because that is what it is.

Free·No signup·Runs in your browser

Calculated

$9,706,667 – $18,026,667

Estimated valuation

Annual recurring revenue $1,000,000 · Year-on-year growth 100%

Price
Free
Inputs
3
Account needed
No
Last updated
20 September 2026

Use the saas valuation calculator

This free calculator runs in your browser. Nothing is sent to a server, and no account or email is required. Enter:

  • Annual recurring revenue — Recurring revenue only — exclude one-off services.
  • Year-on-year growth — ARR growth over the last twelve months.
  • Gross margin — Good SaaS runs 70-85%.

How it works

  1. 1

    Enter your numbers

    Fill in annual recurring revenue, year-on-year growth and gross margin. Nothing is sent anywhere — the maths runs in your browser.

  2. 2

    Press estimate valuation

    One button. Change any input afterwards and the answer updates as you type.

  3. 3

    Read the result

    You get estimated valuation, plus implied arr multiple, current arr, midpoint.

How SaaS companies get valued

Most software companies are valued on a multiple of annual recurring revenue. The multiple is not fixed — it is mostly a function of how fast the company is growing, adjusted for how much of each revenue dollar it keeps.

This calculator applies a growth-driven multiple, scales it by gross margin, and returns a range rather than a single figure, because the spread between a floor and a ceiling is the honest answer.

More on valuation

Growth drives the multiple

A company growing 20% a year and one growing 150% do not trade anywhere near each other, even at identical ARR. Growth is the dominant variable in public SaaS comparables, and private rounds broadly follow the same logic with more noise.

Gross margin matters as a modifier. A business at 85% margin keeps more of every dollar than one at 55%, and the market prices that difference — but no margin rescues a company that has stopped growing.

What this calculator cannot see

Net revenue retention is arguably the strongest single predictor of a premium multiple, and it is not an input here. A company with 130% NRR grows without acquiring anyone, and buyers pay for that.

Neither can it see customer concentration, competitive position, churn quality, the strength of your team, or whether a strategic acquirer wants exactly what you have built. Any of those can move the real number by several multiples in either direction.

How to use the number

Treat this as a sanity check, not a price. It is useful for knowing roughly which order of magnitude you are in before a conversation, and for noticing when an offer is far outside the range comparable companies trade at.

Valuation in a real transaction is set by what a specific buyer will pay on a specific day, and that is a negotiation, not a formula. Bring a banker or an experienced advisor to anything that matters.

Accuracy and limitations

  • A heuristic from public comparables, not a valuation. Real prices are set by a specific buyer on a specific day.
  • Cannot see net revenue retention, which is arguably the strongest single predictor of a premium multiple.
  • Cannot see customer concentration, competition, churn quality or strategic fit. Any of those can move the real number by several multiples either way.

Frequently asked questions

How is a SaaS company valued?
Usually as a multiple of annual recurring revenue, where the multiple is driven mainly by growth rate and adjusted for gross margin, retention and market position. Faster growth earns a higher multiple.
What ARR multiple do SaaS companies trade at?
The range is wide and moves with the market. Slow-growing companies may trade at low single-digit multiples, while high-growth companies can reach the high teens. Growth rate explains most of the spread.
Does gross margin affect SaaS valuation?
Yes, as a modifier. Higher margin means more of each revenue dollar reaches the bottom line, and the market prices that. It does not compensate for weak growth.
Why does this show a range instead of one number?
Because a single figure would be false precision. Two companies with identical ARR, growth and margin can be worth very different amounts depending on retention, concentration and who is buying.
Is this an official valuation?
No. It is a heuristic based on public comparables, useful as a sanity check before a conversation. Any real transaction needs proper diligence and professional advice.

More ways to run the numbers.

  • MRR Growth Calculator Where recurring revenue lands if the current growth rate holds — compounded month by month rather than added up. Open →
  • Equity Dilution Calculator What you still own once a priced round closes, what the investors take, and what the option pool quietly costs you. Open →
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