SaaS Valuation Calculator
Free tool · by Daniel HaketWhat's your SaaS worth? Enter your ARR, growth rate and margin, and this estimates a valuation range using revenue multiples and the Rule of 40 — the back-of-envelope maths investors and acquirers actually start from.
How SaaS valuation works
Most software businesses are valued on a multiple of ARR, and the multiple is driven mostly by growth: fast-growing SaaS commands 8–15× ARR, while flat or slow-growing companies fetch 2–4×. The Rule of 40 (growth rate + profit margin ≥ 40%) is the quick sanity check investors apply — it rewards you for balancing growth and efficiency. Retention, market and who's buying swing the final number a lot, so treat this as the starting range, not an appraisal.
Frequently asked questions
How is a SaaS company valued?
Usually as a multiple of ARR, with the multiple set mostly by growth rate — faster growth earns a higher multiple. Profitability, retention and market conditions adjust it.
What is the Rule of 40?
A quick health check: your growth rate plus profit margin should total at least 40%. Above 40 signals a healthy balance of growth and efficiency and supports a higher valuation.
Why is valuation a range, not a number?
Because it depends on factors no formula fully captures — retention, competition, the buyer's strategy and market timing. A range sets expectations; a real offer sets the price.
How do I actually sell my SaaS?
Get your metrics and books clean, then list on a marketplace that connects you with vetted buyers — like Flippa — or work with a broker for larger deals.
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This tool is free and runs entirely in your browser. The link above is an affiliate link: we may earn a commission if you sign up, at no extra cost to you, and it never changes our honest take.