Value a business · Calculator
SaaS Valuation Scenario Calculator
Explore low, base and high SaaS valuation scenarios using your annual recurring revenue and chosen multiples.
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- Every formula shown
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What if
Sensitivity to your assumptions
| ARR scenario | ARR | Low value | Base value | High value |
|---|---|---|---|---|
| 20% lower ARR | $80,000 | $160,000 | $240,000 | $320,000 |
| Entered ARR | $100,000 | $200,000 | $300,000 | $400,000 |
| 20% higher ARR | $120,000 | $240,000 | $360,000 | $480,000 |
What is a SaaS revenue multiple valuation?
A revenue-multiple valuation multiplies annual recurring revenue by a chosen multiple. The arithmetic is simple; the multiple carries all of the judgment about growth, retention, margins and market conditions.
How the calculation works
Scenario value = annual recurring revenue × your chosen ARR multiple.
Worked example
$100,000 in ARR at illustrative multiples of 2×, 3× and 4× produces scenarios of $200,000, $300,000 and $400,000. These default multiples are arithmetic examples, not current market benchmarks.
Assumptions and limitations
This is an educational sensitivity tool, not an appraisal or an offer. It does not choose an appropriate multiple or account for debt, cash, dilution, retention, concentration or deal terms. ARR is a recurring-revenue run rate, not necessarily recognized annual revenue. Validate your assumptions independently.
Frequently asked questions
Can I use this as a startup valuation calculator?
Yes, if the startup already has recurring revenue: it applies low, base and high multiples you choose to annual recurring revenue. It cannot value a pre-revenue startup, because a revenue multiple has nothing to multiply. Those are usually priced with methods such as comparable funding rounds, the scorecard or Berkus methods, or the venture capital method, which this tool does not perform. The SaaS valuation multiples guide covers published multiples and those methods.
What is ARR?
Annual recurring revenue is the yearly value of active subscription contracts at a point in time, often monthly recurring revenue × 12. It is a run rate, not the revenue recognised over the past year.
Why doesn't the calculator suggest a multiple?
Multiples vary widely with growth, retention, size, profitability and the market at the time of sale. A default would read as a benchmark, and we do not publish one we cannot source. Enter the range you are testing.
Is the result what a buyer would pay?
No. Price depends on deal structure, debt and cash, earn-outs, customer concentration and the buyer's own plans. Treat the scenarios as a sensitivity check.
What if the business is profitable but not a subscription business?
Smaller profitable businesses are often priced on profit rather than recurring revenue. Use the website worth calculator, which applies multiples to monthly profit.
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