SaaS Valuation Calculator
Estimate SaaS enterprise and equity value with a multiple you can defend, then inspect downside, base, upside, and same-multiple forward scenarios.
Planning estimate only. No live market data is used, and the result is not an appraisal or financial advice.
Base enterprise value
$6,000,000
Indicative scenario, not an appraisalARR
$1,200,000
Modeled EBITDA
$120,000
Rule of 40 score
40%
Equity value
$5,900,000
Formula shown
$1,200,000 ARR × 5 = $6,000,000 enterprise value
$6,000,000 − $100,000 net debt = $5,900,000 equity value
Multiple sensitivity
Only the multiple changes; operating inputs stay fixed.
Downside · 4×
Enterprise $4,800,000
Equity
$4,700,000
Base · 5×
Enterprise $6,000,000
Equity
$5,900,000
Upside · 6×
Enterprise $7,200,000
Equity
$7,100,000
Same-multiple forward scenario
$7,800,000 enterprise value
Applies 30% annual growth to ARR, holds margin and the 5× multiple constant, and does not model market re-rating.
This estimate excludes non-recurring revenue, normalized working capital, tax, dilution, transaction costs, earn-outs, control premiums, discounts, and due diligence adjustments. It is not financial advice.
Transparent valuation methods
Choose the metric that fits the business
The calculator does not infer a market multiple. It applies the multiple you enter to one clearly defined operating metric.
ARR multiple method
Enterprise value = ARR × ARR multiple
Useful when recurring revenue and growth are the primary valuation lens, including businesses that are intentionally reinvesting and not yet EBITDA-positive.
EBITDA multiple method
Enterprise value = normalized EBITDA × EBITDA multiple
Useful for profitable, more mature businesses. The on-page EBITDA is ARR × entered margin, so replace it with normalized financials in a real process.
Enterprise to equity value
Equity value = enterprise value − net debt
Net debt is debt minus cash. Entering net cash as a negative number increases the arithmetic equity value. Transaction adjustments can differ.
Multiple discipline
Support the multiple before trusting the output
A precise formula cannot repair an unsupported multiple. Record why each comparable is relevant and what adjustments remain.
01
Match size and stage
Compare similar recurring-revenue scale, growth stage, profitability profile, capital needs, and buyer universe.
02
Match revenue quality
Review recurring versus services revenue, customer concentration, contract length, renewal behavior, net retention, and gross margin.
03
Match the valuation date
Multiples change with interest rates, risk appetite, financing conditions, sector sentiment, and the exact transaction date.
04
Normalize the metric
Remove one-time revenue and expenses consistently. For EBITDA, document owner compensation, capitalized costs, and other adjustments.
Interpret the range
Scenarios expose assumptions, not certainty
Downside and upside outputs move only the selected multiple. The forward result changes the operating metric at the entered growth rate while holding the multiple constant.
Rule of 40 is context
The page adds annual ARR growth and EBITDA margin. It displays that score without automatically changing the valuation multiple.
Forward is not forecast
The forward scenario does not model churn, bookings, pricing, margin change, capital needs, market movement, or probability of achieving the growth input.
A range is not an offer
Deal structure, diligence, working capital, earn-outs, control, dilution, tax, legal risk, and buyer-specific synergies can materially change proceeds.
Use verified financials
Reconcile recurring revenue, EBITDA, debt, cash, and adjustments to reliable records before using the output in a transaction or financing decision.
SaaS valuation questions