Free calculator
SaaS valuation calculator
ARR, churn, LTV and a realistic value range for your SaaS or micro-SaaS, in one place.
Your SaaS
- ARR
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- Average revenue per customer
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- Customer lifetime value (LTV)
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- Annual churn (compounded)
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- Annual SDE
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- Market range (SDE multiples)
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- Estimated value
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Estimate only, based on the numbers you enter. Not an appraisal.
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How SaaS businesses are valued
Micro-SaaS (under about $1M ARR, owner-run) is usually priced on annual SDE, roughly 3x–4.5x at market and higher with low churn and steady growth. Larger SaaS is often priced on ARR (commonly 2x–7x), which needs a manual review of retention, growth and margins.
The metrics buyers check
- MRR / ARR: recurring revenue only; no setup fees or one-off services.
- Churn: monthly logo and revenue churn. Under 3% a month is strong for SMB SaaS.
- LTV: average revenue per customer ÷ monthly churn.
- Growth and CAC payback: how fast new revenue arrives and what it costs.
Questions, answered
Frequently asked questions
How do you value a SaaS business?
Small SaaS is usually valued at a multiple of annual SDE (about 3x to 4.5x at market). Larger SaaS may be valued on ARR once retention, growth and gross margin justify it.
How do I calculate ARR from MRR?
ARR = MRR × 12, using recurring subscription revenue only.
How is churn rate calculated?
Monthly churn = customers (or MRR) lost in the month ÷ customers (or MRR) at the start of the month. The calculator compounds it to an annual figure.
What is a good LTV?
LTV = average revenue per customer ÷ monthly churn. Buyers compare it with your customer acquisition cost; 3x CAC or more is healthy.
What lowers a SaaS valuation?
High churn, founder-only code, heavy support load, platform or API dependence, customer concentration and revenue that is not truly recurring.
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