How Much Is My SaaS Worth?
SaaS businesses typically sell for 3-10x ARR, but your specific multiple depends on growth rate, churn, and unit economics. Get your personalized valuation instantly.
Get Your Free Business Valuation →How We Calculate Business Valuations
We analyze your MRR, growth rate, churn, and LTV/CAC ratio against a database of 500+ SaaS acquisitions to calculate your likely sale price.
Current Business Valuation Multiples (2024-2025)
| Metric | Low | Median | High |
|---|---|---|---|
| Annual Revenue | 1x | 2x | 4x |
| Annual Profit | 2x | 3x | 5x |
Factors That Affect Your Business Valuation
- Monthly Recurring Revenue (MRR): Higher MRR commands higher absolute valuations and often better multiples.
- Growth Rate: SaaS growing 20%+ MoM can achieve 8-12x ARR; flat growth sees 2-4x.
- Churn Rate: Net revenue retention above 100% dramatically increases valuation multiples.
- LTV/CAC Ratio: Ratios above 3:1 indicate efficient customer acquisition and higher value.
Frequently Asked Questions
What multiple do SaaS companies sell for?
Typical SaaS multiples range from 3x to 10x ARR. High-growth SaaS with low churn can achieve 10-15x.
Does profitability matter for SaaS valuation?
For high-growth SaaS, revenue growth often matters more. For mature SaaS, profit margins become critical.
How does churn affect my SaaS value?
Every 1% reduction in monthly churn can increase your valuation by 10-20% due to improved LTV.