How This SaaS Valuation Calculator Works
Private SaaS companies are usually valued as a multiple of ARR (annual recurring revenue). This calculator picks a starting multiple from your growth rate, adjusts it for net revenue retention, and shows a range of 25% below to 25% above the result, because real multiples vary widely deal to deal.
Formula: Enterprise value = ARR × base multiple (by growth) × NRR adjustment
| YoY growth | Base multiple |
|---|---|
| Under 10% | 2.5× |
| 10–24% | 3.5× |
| 25–49% | 4.5× |
| 50–99% | 6× |
| 100%+ | 8× |
| NRR | Adjustment |
|---|---|
| 120% or more | +20% |
| 110–119% | +10% |
| 100–109% | none |
| 90–99% | −10% |
| Below 90% | −25% |
Worked Example
A SaaS company has $1,000,000 ARR, grows 80% year over year, and has 115% NRR.
- 80% growth falls in the 50–99% tier, so the base multiple is 6×.
- 115% NRR earns a +10% adjustment, so 6 × 1.10 = 6.6×.
- Midpoint value: $1,000,000 × 6.6 = $6.6M.
- Range (±25%): about $5.0M to $8.3M.
2026 SaaS Valuation Benchmarks
Multiples have fallen sharply from the 2021 peak. These are the figures this calculator is calibrated against, as reported in 2026 industry summaries of the underlying studies. Methodologies differ, so check the original publications before relying on any single number.
| Benchmark | Reported figure | Source |
|---|---|---|
| Private SaaS, lower middle market | Median ~4.5× ARR (range ~3–7×) | Livmo, via 2026 industry summaries |
| Companies with $0–5M ARR | Median ~3.3× | Aventis Advisors |
| Companies with $5–10M ARR | Median ~4× | Aventis Advisors |
| Bootstrapped, $3–20M ARR | Median ~4.8× ARR | SaaS Capital (2025 survey) |
| Venture-backed, $3–20M ARR | Median ~5.3× ARR | SaaS Capital (2025 survey) |
| Top-tier private (NRR above 120%, passes Rule of 40) | ~7–9× ARR | 2026 industry summaries |
| Median growth, bootstrapped $3–20M ARR | ~15% YoY; NRR ~103% | SaaS Capital (2026 survey) |
Two things to keep in mind: smaller companies (under about $1M ARR) often trade below these medians, and AI-native SaaS companies have been reported at far higher multiples than traditional SaaS, which this calculator does not model.
What Moves a SaaS Multiple
- Growth rate: faster, durable growth earns a higher multiple. See what changes from $50k to $250k MRR.
- Net revenue retention: customers who stay and expand are the strongest quality signal. Compare yours with churn benchmarks by stage.
- Efficiency: a good Rule of 40 score and a healthy CAC payback period support a premium.
- Scale and risk: larger ARR, low customer concentration and clean financials all reduce a buyer's risk.
SaaS Valuation FAQ
What is a good ARR multiple for a SaaS company?
For private SaaS in 2026, roughly 3–7× ARR is typical, with a median around 4–5×. Top performers with high growth, strong retention and good efficiency have been reported at 7–9×.
Is this valuation or enterprise value?
It estimates enterprise value, which is the value of the business before debt and cash. Equity value to shareholders is enterprise value minus debt plus cash.
Why is my estimate lower than what I read online?
Many older articles quote 2021 multiples of 10× or more. Multiples have compressed since then, and public-company multiples are usually higher than what small private companies receive.
Does this work for early-stage startups with little revenue?
Not well. Below about $1M ARR, valuations depend more on team, market and traction than on a revenue multiple. Try the Berkus Method calculator for pre-revenue companies.