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SaaS Valuation Calculator

Calculate the valuation of your SaaS business based on monthly recurring revenue (MRR) and growth rate.

Accurately Assess the Value of Your SaaS Business

Calculate the valuation of your SaaS business based on monthly recurring revenue (MRR) and growth rate.

Key Features

  • Precise Valuation: Calculate your business's estimated valuation based on real-time data inputs.
  • Growth Insights: Understand how your growth rate impacts the valuation and future potential of your business.
  • User-Friendly Interface: Input your data quickly and receive instant valuation results.
  • Strategic Planning: Use the valuation insights to guide your business strategies and investment decisions.

How It Works

  1. Enter Your MRR: Provide your current monthly recurring revenue to begin the calculation.
  2. Input Your Growth Rate: Include your expected growth rate to understand its impact on valuation.
  3. Submit Your Data: Once the reCAPTCHA is verified, submit your information to receive the valuation.
  4. Receive Your Valuation: Instantly get the estimated valuation of your SaaS business displayed on the screen.

Understanding the Valuation Formula

The SaaS Valuation Calculator uses the following formula to provide an estimate based on your MRR and growth rate:

Valuation = 2 × MRR × 12 + MRR × 12 × (1 + 2.5 × Growth Rate)
  • Current MRR Contribution: This part of the formula, 2 × MRR × 12, represents twice the annual value of your current MRR.
  • Growth Contribution: The growth aspect, MRR × 12 × (1 + 2.5 × Growth Rate), accounts for future revenue potential, adjusted for growth expectations.

Frequently Asked Questions

Why is SaaS valuation important?

Understanding your SaaS business's valuation helps in making strategic decisions, securing investments, and planning for future growth.

What is MRR?

Monthly Recurring Revenue (MRR) is the predictable revenue your business earns each month from subscriptions.

How is growth rate calculated?

The growth rate is the expected percentage increase in MRR over a specific period, reflecting your business’s expansion.

Can I trust the valuation provided?

Our tool uses industry-standard formulas, but it’s advisable to consult financial experts for comprehensive evaluations.

Is the tool free to use?

Yes, our SaaS Valuation Calculator is free for all users to estimate their business valuation.