Quickly and accurately calculate the value of your SaaS company using industry benchmarks, financial metrics, and proven valuation models.
The SaaS Valuation Calculator uses the formula: Valuation = 2 x ARR + ARR x (1 + 2.5 x Growth Rate). This combines your current revenue and growth potential for an accurate estimate.
Enter your annual recurring revenue (ARR), which represents the predictable revenue your company generates annually from subscriptions.
Provide the expected growth rate of your business, ideally a percentage that reflects past performance or forecasted growth.
The calculator combines your ARR and growth rate to generate an estimated valuation for your business, crucial for both investors and founders.
Receive a calculated value reflecting your company's worth based on your ARR and growth rate input, providing a solid starting point for discussions.
See how your growth rate amplifies your valuation, highlighting the importance of growth strategies in maximizing your business's value.
Get a snapshot of your business's market valuation to understand how investors, potential buyers, or partners might perceive your value.
Use the valuation result to better plan future investments, funding rounds, or exit strategies based on realistic expectations.
Estimate the current worth of your business to help in negotiations with investors, ensuring the company is priced appropriately based on its growth potential and recurring revenue model.
Assess the price range for acquiring a SaaS business. Guide fair price negotiations, especially when growth rates are high and ARR is significant.
Determine an equitable exchange value based on recurring revenue and growth trajectories when considering mergers or partnerships between SaaS companies.
Make strategic decisions about expansion, hiring, or major investments by understanding your company's current financial standing and future potential.