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Hndy Tools

SaaS Valuation Calculator

Estimate your startup valuation based on ARR, growth rate, churn, and market type.

SaaS
Business
Finance

Valuation Metrics

About This Tool

SaaS valuation is part art, part science. Investors use revenue multiples as a shorthand, but they adjust heavily based on growth rate, churn, and market positioning. This calculator combines all three factors to give you a realistic valuation range and an investor-style quality score.

If you're preparing for an acquisition, check our SaaS Acquisition Value Calculator. To model how growth improvements impact valuation, use the MRR Growth Simulator. And quantify what churn is really costing you with the SaaS Churn Impact Calculator.

All calculations happen in your browser — no data is sent to any server.

How It Works

Base Valuation = ARR × Revenue Multiple (by market type)
Adjusted Valuation = Base Mid Valuation × Growth Multiplier × Churn Multiplier
Growth Multiplier: <20% = 0.8x, 20–50% = 1.0x, 50–100% = 1.5x, >100% = 2.5x
Churn Multiplier: <5% = 1.0x, 5–10% = 0.8x, 10–15% = 0.6x, >15% = 0.4x
Revenue Multiples: SMB = 3–5x, Mid-Market = 4–7x, Enterprise = 5–10x, Developer Tools = 4–8x
Investor Score = Growth Score + Churn Score + Market Score (max 100)

The base valuation establishes a range using the revenue multiple for your market. Then growth and churn multipliers adjust the mid-range value up or down. The investor score is a composite metric ranging from 10–100 that gives you a quick quality signal — scores above 65 indicate a fundable business, while scores below 30 suggest fixing fundamentals before fundraising.

Frequently Asked Questions (FAQ)

What revenue multiple should I use for my SaaS?
Multiples vary by market segment. SMB SaaS typically trades at 3–5x ARR, Mid-Market at 4–7x, Enterprise at 5–10x, and Developer Tools at 4–8x. These ranges reflect investor appetite — enterprise deals command premiums for higher retention and contract values. Use our SaaS Acquisition Value Calculator if you're valuing for an exit rather than a fundraise.
Why does churn affect valuation so much?
Churn directly impacts your net revenue retention (NRR), which is one of the strongest predictors of SaaS valuation. A company with 5% monthly churn loses nearly half its annual revenue base. Reducing churn has a compounding effect — see the impact with our SaaS Churn Impact Calculator.
How does growth rate affect my multiple?
Growth is the single largest valuation driver in SaaS. Companies growing <20% get compressed multiples (~0.8x), while hypergrowth (>100% YoY) can command 2.5x or more. This reflects investor willingness to pay for future revenue expansion. Model your growth trajectory with our MRR Growth Simulator to see how hitting growth milestones impacts valuation.

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