How do I calculate my business’s value?

Multiply the right earnings figure by a market multiple: ARR for a growing SaaS, yearly SDE or EBITDA for a business sold on profit. The multiple depends on growth, retention, risk and size; this calculator shows each adjustment.

What is a typical SaaS valuation multiple in 2026?

Public SaaS traded at a median 4.8x next-year revenue in October 2026. Private SaaS deals had a 3.8x median revenue multiple in 2025. Small SaaS sold on Acquire.com at 3.9x net income in 2025.

What is a good SDE multiple?

On Flippa in H1 2026, SaaS, app, content and ecommerce businesses averaged 1.55x to 2.62x profit; a typical Empire Flippers sale is 2.2x. FE International puts owner-operated stores at 2.0x to 4.0x SDE and small SaaS at 2.5x to 4x.

How much is a SaaS company worth per $1 of ARR?

FE International puts private SaaS at roughly 2x to 7x ARR in 2026: 2x to 3x under $1M ARR, 3.5x to 5.5x at $5M–$10M, and 8x or more above $20M ARR with the Rule of 40 and NRR above 120%.

How do you value a startup with no profit?

On revenue. A growing SaaS is valued as a multiple of ARR, adjusted for growth and retention. Pre-revenue startups have no market multiple; their price is negotiated in the funding round.

Does net revenue retention affect valuation?

Yes. In SaaS Capital’s model each 10 points of NRR adds about 0.44x ARR. FE International writes that 15 points of NRR separated a 5x business from a 24x one in McKinsey’s data.

Is this calculator an appraisal?

No. It is a directional estimate from public market data and published models, not an appraisal or financial advice. A real price depends on buyers, deal terms and diligence.

Free calculator

SaaS & business valuation calculator from revenue or profit multiples

Estimate what a growing SaaS is worth from its ARR, or what a bootstrapped SaaS, content site, store, app or newsletter is worth from its profit. Every multiple is dated and sourced, and every adjustment is shown.

Updated October 27, 2026

Your business

ARR

Growth, year on year

Net revenue retention

Gross margin

EBITDA margin

Monthly customer churn

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Estimated value

$27,271,150

Range $16.4M to $38.2M at 5.45x ARR.

Multiple used: 5.45x ARR
Range: 3.27x – 7.64x
+10 points of NRR: +$2.2M
+10 points of growth: +$3.1M

What moved the multiple

Start: flat SaaS at index · 4.22x2.75x
Growth · 40%+2.48x
Net revenue retention · 105%+0.22x
Multiple used5.45x

Rule of 40 score: 40 (growth + EBITDA margin).
A directional estimate, not an appraisal or financial advice.

A buyer or investor would most likely see this business between $16.4M and $38.2M. Retention and growth are the levers that move it most.

Quick answer

How do you value a SaaS business?

Growing SaaS sells on a multiple of ARR; small bootstrapped businesses on a multiple of yearly profit (SDE). SaaS Capital’s model: multiple = −2.43 + 0.19 × index + 6.21 × growth + 4.38 × NRR. At today’s 4.2x index, a $5M ARR company growing 40% with 105% NRR gets 5.45x, about $27M. On Flippa in H1 2026, SaaS, app, content and ecommerce businesses sold for 1.55x to 2.62x profit on average.

How to use the valuation calculator

Pick a method
Revenue multiple for a SaaS that grows and reinvests; profit multiple for a bootstrapped SaaS or any other online business sold on its earnings.
Enter your numbers
Use trailing twelve months. ARR counts recurring revenue only; SDE is profit before the owner’s pay; EBITDA is after paying a manager.
Read the range
See the value, the low-high range, the multiple used and each adjustment that moved it.
Test the levers
The sensitivities show what 10 more points of retention or growth, or fewer owner hours, add to the value.

How the calculator works

Revenue method. The base is SaaS Capital’s private SaaS model (Q2 2024 edition, the latest with published coefficients, fitted on 55 private valuations): multiple = −2.43 + 0.19 × SaaS Capital Index + 6.21 × ARR growth + 4.38 × NRR, with rates as decimals and the index at 4.2x (30 September 2026). Growth is held between −25% and 264% and NRR between 72% and 156%, the ranges the model was fitted on.

Then four adjustments. EBITDA margin: each point is worth a fifth of a point of growth, the 1:5 ratio Meritech measured across public software on 23 October 2026, so 6.21 ÷ 5 × margin. Gross margin below the model’s 65% floor scales the multiple by gross margin ÷ 65% (never below 0.3). Size: below $2M ARR, the model’s minimum, the multiple falls linearly to 0.56 at $1M ARR or less, the ratio of FE International’s 2026 midpoints (2x–3x ARR under $1M against 3.5x–5.5x at $5M–$10M). Churn: above 3% of customers a month, 2% comes off per extra point, at most 10%; this one is SaaSCity’s assumption, kept small because NRR already prices retention. The result is held between 0.5x and 27x, the model’s validated outputs, and the range is ±40%, where SaaS Capital found most real valuations.

Profit method. The base is Flippa’s H1 2026 average multiple of profit for the business type: SaaS 2.47x, app 2.62x, content site 2.32x, ecommerce 1.55x; newsletters use the content site figure, since Flippa has no newsletter category and FE International prices newsletters with content sites. EBITDA multiplies the base by 1.5, the ratio of FE International’s EBITDA band (3.0x–6.0x) to its SDE band (2.0x–4.0x).

Profit factors: age under 1 year ×0.75, 1–2 years ×0.9, 2–3 years ×1, 3+ years ×1.05. Growth: +0.5% per point up to +20%, and −1% per point of decline down to ×0.6. Owner hours: ×1.10 at zero, ×1 at 20 hours a week, ×0.85 at 40 or more, linear between. Largest customer above 20% of revenue (SaaS Capital’s threshold): −1% per point, down to ×0.7. One platform carrying most revenue: ×0.85, the gap between FE International’s Amazon-dependent (2.0x–3.5x SDE) and owned-brand (2.5x–4.0x) bands. Main traffic source above 50%: a third of the excess comes off, FE International’s estimate of the revenue exposed to a search decline. Age, growth and hour weights are SaaSCity’s assumptions; the factors multiply, held between 0.4 and 1.6, and the range is ±20%, the width of FE’s typical 2.0x–3.0x SDE band.

Formula

Revenue: multiple = (−2.43 + 0.19 × SCI + 6.21 × growth + 4.38 × NRR + 1.242 × EBITDA margin) × gross margin factor × size factor × churn factor
Value = ARR × multiple, range ±40%
Profit: multiple = Flippa average × (1.5 if EBITDA) × age × growth × owner hours × customer × platform × traffic
Value = SDE or EBITDA × multiple, range ±20%

Worked example

SaaS Capital’s own example company: $5,000,000 ARR, 40% growth, 105% NRR, with today’s index of 4.217x.
Start: −2.43 + 0.19 × 4.217 + 4.38 × 1.00 = 2.75x for a flat company with 100% NRR.
Growth: 6.21 × 0.40 = +2.48x. NRR: 4.38 × 0.05 = +0.22x. Multiple: 5.45x.
Value: $5,000,000 × 5.45 = $27.3M.
Range ±40%: 3.27x to 7.64x, or $16.4M to $38.2M.

SaaS and online business valuation multiples (2026)

Public and private SaaS revenue multiples and small online business profit multiples, each with its source and date.

Segment	Multiple	Of	Source	Date
Public SaaS, median	4.8x	EV ÷ next-12-month revenue	Clouded Judgement	23 Oct 2026
Public SaaS, top 5 median	33.1x	EV ÷ next-12-month revenue	Clouded Judgement	23 Oct 2026
Public SaaS growing over 22%	18.7x	EV ÷ next-12-month revenue	Clouded Judgement	16 Oct 2026
Public SaaS growing 15–22%	7.3x	EV ÷ next-12-month revenue	Clouded Judgement	16 Oct 2026
Public SaaS growing under 15%	3.7x	EV ÷ next-12-month revenue	Clouded Judgement	16 Oct 2026
Public software, median	5.0x	EV ÷ implied ARR	Meritech	23 Oct 2026
SaaS Capital Index (public B2B SaaS)	4.2x	Market cap ÷ run-rate revenue	SaaS Capital	30 Sep 2026
SEG SaaS Index, median	4.1x	EV ÷ trailing revenue	Software Equity Group	3Q 2026
SEG SaaS Index, growing over 30%	12.7x	EV ÷ trailing revenue	Software Equity Group	3Q 2026
Private SaaS M&A, 2015–2026 (543 deals)	4.5x (middle half 2.4x–8.1x)	EV ÷ revenue	Aventis Advisors	31 Aug 2026
Private SaaS M&A, 2025	3.8x	EV ÷ revenue, median	Aventis Advisors	31 Aug 2026
Private SaaS, $5M–$10M ARR	3.5x–5.5x	ARR	FE International	25 Aug 2026
Private SaaS, under $1M ARR	2.5x–4x	SDE	FE International	25 Aug 2026
Small SaaS sold on Acquire.com, 2025 (129 deals)	3.9x	Price ÷ net income	Acquire.com	Feb 2026
Flippa: SaaS	2.47x (top quartile 4.06x)	Profit	Flippa	H1 2026
Flippa: app	2.62x (top quartile 5.46x)	Profit	Flippa	H1 2026
Flippa: content site	2.32x (top quartile 4.68x)	Profit	Flippa	H1 2026
Flippa: ecommerce	1.55x (top quartile 2.75x)	Profit	Flippa	H1 2026
Empire Flippers: typical business	2.2x (premium 2.4x)	Annual net profit, trailing 12 months	Empire Flippers	Checked 27 Oct 2026
Owner-operated ecommerce	2.0x–4.0x	SDE	FE International	22 Sep 2026
Content sites, blogs and newsletters	3x–10x, lower to middle for SDE	Annual earnings	FE International	16 Oct 2026

Last verified 27 October 2026. Public multiples are enterprise value over revenue; marketplace multiples are sale price over a year of profit. Links to every source are below.

SaaS valuation multiples: public vs private

Public SaaS traded at a median 4.8x next-year revenue on 23 October 2026, while the fastest growers (over 22%) traded near 18.7x. Private companies sell for less: Aventis Advisors counts a 3.8x median revenue multiple for private SaaS deals in 2025. Small bootstrapped products sell on profit instead, at about 2x to 4x.

SDE vs EBITDA: which multiple applies

SDE is profit before the owner’s pay, used when a buyer will run the business themselves, which covers most businesses under a few million dollars. EBITDA keeps a manager’s salary as a cost and earns a higher multiple. Never apply an EBITDA multiple to SDE: SDE is the larger number, so the result overstates value.

What raises a valuation

For SaaS, retention and growth: in SaaS Capital’s model, 10 points of growth add 0.62x ARR and 10 points of NRR add 0.44x. For smaller businesses, buyers pay for earnings that survive the owner leaving: fewer owner hours, no customer above a fifth of revenue, traffic and sales spread across channels, and two or more years of steady trading.

Business valuation questions

How do I calculate my business’s value?: Multiply the right earnings figure by a market multiple: ARR for a growing SaaS, yearly SDE or EBITDA for a business sold on profit. The multiple depends on growth, retention, risk and size; this calculator shows each adjustment.
What is a typical SaaS valuation multiple in 2026?: Public SaaS traded at a median 4.8x next-year revenue in October 2026. Private SaaS deals had a 3.8x median revenue multiple in 2025. Small SaaS sold on Acquire.com at 3.9x net income in 2025.
What is a good SDE multiple?: On Flippa in H1 2026, SaaS, app, content and ecommerce businesses averaged 1.55x to 2.62x profit; a typical Empire Flippers sale is 2.2x. FE International puts owner-operated stores at 2.0x to 4.0x SDE and small SaaS at 2.5x to 4x.
How much is a SaaS company worth per $1 of ARR?: FE International puts private SaaS at roughly 2x to 7x ARR in 2026: 2x to 3x under $1M ARR, 3.5x to 5.5x at $5M–$10M, and 8x or more above $20M ARR with the Rule of 40 and NRR above 120%.
How do you value a startup with no profit?: On revenue. A growing SaaS is valued as a multiple of ARR, adjusted for growth and retention. Pre-revenue startups have no market multiple; their price is negotiated in the funding round.
Does net revenue retention affect valuation?: Yes. In SaaS Capital’s model each 10 points of NRR adds about 0.44x ARR. FE International writes that 15 points of NRR separated a 5x business from a 24x one in McKinsey’s data.
Is this calculator an appraisal?: No. It is a directional estimate from public market data and published models, not an appraisal or financial advice. A real price depends on buyers, deal terms and diligence.

Cite this tool

Free to link and quote. Use this reference:

SaaSCity, "SaaS & Business Valuation Calculator", October 27, 2026. https://saascity.io/free-tools/saas-valuation-calculator