Calculate your SaaS company's valuation using ARR multiples, Rule of 40, and growth metrics. Free tool with 2026 benchmarks and expert methodology for founders, investors, and advisors.
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SaaS company valuations depend on multiple factors including revenue, growth rate, retention, and profitability. Our SaaS Valuation Calculator uses industry-standard methodologies and 2026 market benchmarks to estimate your company's enterprise value. Whether you're preparing for fundraising, planning an exit, or benchmarking against peers, this tool provides comprehensive valuation analysis with ARR multiples, Rule of 40 scoring, and factor-based adjustments.
SaaS valuation is the process of determining the enterprise value of a software-as-a-service company. Unlike traditional businesses valued on profit, SaaS companies are typically valued on revenue multiples because of their recurring revenue models and growth potential. The primary valuation method is ARR Multiple (Enterprise Value ÷ Annual Recurring Revenue), but sophisticated valuations also consider growth rate, net revenue retention (NRR), gross margins, and the Rule of 40 efficiency metric. Private SaaS companies typically trade at 1.0-1.5x discount to public comparables.
SaaS Valuation Formula
Enterprise Value = ARR × Adjusted Multiple
Adjusted Multiple = Base Multiple + Growth Premium + NRR Premium + Efficiency Adjustments
Rule of 40 = Growth Rate % + Profit Margin %Understand your company's worth before investor negotiations. Know what multiple to expect and which metrics drive premium valuations.
Whether selling to a strategic acquirer or financial buyer, knowing your valuation helps set realistic expectations and negotiate effectively.
Fair market value calculations for stock options require defensible valuations. This helps with 409A compliance and employee equity grants.
Understanding how each metric impacts valuation helps prioritize initiatives—should you focus on growth or profitability?
Regular valuation updates help boards and investors track company progress and benchmark against market conditions.
Acquirers use these methods to evaluate targets. Understanding the methodology helps you prepare for scrutiny.
See how your multiple compares to companies at similar stages and growth rates. Identify gaps to close for higher valuations.
Use before investor meetings to understand expected valuation ranges and prepare for due diligence questions about your metrics.
Whether approached by acquirers or proactively exploring options, know your value before entering negotiations.
Update valuations annually to track progress, set goals, and communicate value creation to stakeholders.
When granting new options or refreshing existing grants, use current valuations for fair strike prices.
Employees or early investors exploring secondary liquidity need current valuation estimates.
Benchmark your valuation multiple against competitors who've raised or been acquired.
SaaS companies are typically valued using ARR multiples (Enterprise Value ÷ ARR). The multiple ranges from 3x-10x+ depending on growth rate, retention, margins, and market conditions. High-growth companies (50%+ YoY) command 6-10x, while mature companies (<25% growth) typically see 3-5x. The Rule of 40 (growth + profit margin ≥ 40%) is a key efficiency benchmark that impacts multiples.