Public SaaS
3.2x
Median EV to trailing-twelve-month revenue for the SEG SaaS Index in 2Q26.
SaaS Valuation Calculator
Estimate SaaS Value Without Fake Precision.
Build an illustrative SaaS valuation range using a visible market anchor, annual recurring revenue, growth and net revenue retention. Every numerical assumption in the model is shown and can be changed.
This is a planning tool, not a formal valuation, fairness opinion, investment recommendation or indication of the price a specific buyer will pay.
Current benchmark context
Start With the Market, Then Adjust for the Business
These figures describe different markets and should not be treated as interchangeable. They provide context for choosing an appropriate starting anchor.
Disclosed SaaS M&A
4.0x
Median EV to trailing-twelve-month revenue for disclosed SaaS M&A transactions reported by SEG in 2Q26.
Profitable SaaS Sales
3.9x
Median confirmed profit multiple reported by Acquire.com for SaaS sales in both 2024 and 2025. This is a profit multiple, not a revenue multiple.
Benchmark references: Software Equity Group 2Q26 SaaS M&A and Public Market Report; Acquire.com January 2026 Acquisition Multiples Report; SaaS Capital 2026 private B2B SaaS valuation methodology. Market conditions change, so update the anchor when newer evidence becomes available.
Methodology
Every Part of the Formula Is Visible
HTBS deliberately keeps this model simple. The market anchor represents external market context. Growth and NRR are the only company metrics that mechanically change the revenue multiple.
ARR = Current MRR multiplied by 12
Adjusted revenue multiple = Market anchor + Growth adjustment + NRR adjustment
Base estimate = ARR multiplied by adjusted revenue multiple
Low and high estimates = Adjusted multiple with the selected sensitivity percentage applied
The growth and NRR adjustment values below are an HTBS heuristic for planning purposes. They are not presented as observed transaction premiums or as SaaS Capital's proprietary formula.
ARR Growth Adjustment
Applied directly to the selected market anchor.
40% or higher
+0.60x
20% to 39.9%
+0.30x
10% to 19.9%
0.00x
0% to 9.9%
-0.30x
Negative growth
-0.60x
NRR Adjustment
Applied separately from growth.
120% or higher
+0.60x
110% to 119.9%
+0.30x
100% to 109.9%
0.00x
90% to 99.9%
-0.30x
Below 90%
-0.60x
Context, not fake precision
Important Metrics That We Do Not Secretly Turn Into a Score
These metrics matter in real diligence and valuation discussions, but this calculator uses them to provide context and warnings rather than pretending we know the exact premium or discount a specific buyer will assign.
Rule of 40
Growth plus EBITDA margin helps show the balance between expansion and profitability. It is displayed as context rather than converted into an invented score.
Gross Margin
Margin structure helps a buyer understand the economics and operating leverage behind recurring revenue.
Customer Churn
High logo churn can signal customer durability problems even when short-term growth still looks healthy.
Customer Concentration
Dependence on a small number of customers can materially affect diligence, risk perception and transaction terms.
Model boundaries
Some Things Are Too Deal-Specific to Pretend They Have a Universal Multiple
These factors can still materially affect a real transaction.
The calculator intentionally does not assign universal numerical premiums or discounts to subjective attributes because those effects depend heavily on the buyer, diligence findings and transaction structure.
Founder dependency
Product architecture
Technical debt
Intellectual property
Security posture
Contract transferability
Competitive differentiation
Strategic buyer synergies
Data-room readiness
Capital structure
Continue the analysis
Valuation Is Only One Part of a SaaS Transaction
ARR Valuation Guide
Understand how recurring revenue is used as a valuation reference.
Read the guideMRR Valuation Guide
See how monthly recurring revenue connects to ARR and valuation.
Read the guideDue Diligence Checklist
Move from a headline valuation estimate into actual business verification.
Start checklistSaaS Exit Planning
Prepare the business before entering a potential sale process.
Plan an exit
Valuation questions
SaaS Valuation Calculator FAQ
How accurate is this SaaS valuation calculator?
It is an illustrative planning tool. It combines a market anchor with a transparent HTBS growth and NRR adjustment model. It cannot predict the exact price a buyer, investor or acquirer will offer.
Why can I change the market multiple?
Market multiples change over time and vary by transaction set. Making the anchor editable prevents the calculator from hiding an outdated market assumption inside the formula.
Why does the calculator use growth and NRR?
Growth and revenue retention are central indicators of recurring-revenue quality. SaaS Capital's 2026 private B2B valuation framework also identifies the current market index, ARR growth and NRR as its primary inputs.
Why is there no SaaS quality score?
A universal score can imply more precision than the underlying evidence supports. HTBS instead shows the inputs, adjustments and contextual risk indicators separately.
What is the profit-based cross-check?
When annual owner-adjusted profit is entered, the calculator separately applies the selected profit multiple. This is especially useful for smaller profitable SaaS businesses where buyers may place substantial weight on earnings.
Does Rule of 40 affect the valuation multiple here?
The calculator displays Rule of 40 as context but does not secretly convert it into a numerical premium. The only automatic multiple adjustments in this model are the published growth and NRR adjustments.
Is this suitable for fundraising valuations?
It can provide market context, but an equity fundraising valuation can differ materially from an acquisition valuation because the transaction structure, investor expectations, dilution, future financing assumptions and strategic objectives are different.
What should a founder do after getting the estimate?
Validate recurring revenue, churn, customer concentration, contracts, financial records, product ownership and other diligence materials before relying on the estimate in a transaction discussion.
An Estimate Starts the Conversation. Diligence Determines What Survives It.
Use the calculator to establish a transparent reference point, then validate the business before entering a fundraising, acquisition or sale process.
