Estimate your SaaS company value using ARR multiples adjusted for growth rate, net revenue retention, churn, and gross margin — the metrics buyers actually care about.
Calculate NRR, LTV:CAC, Rule of 40, burn multiple and 15+ SaaS metrics programmatically. Free tier: 100 req/day. Used by accounting platforms and SaaS analytics tools.
Get API Access →| Growth Rate (YoY) | NRR <100% | NRR 100-115% | NRR 115%+ |
|---|---|---|---|
| <15% (Slow) | 1.5–2.5x | 2.0–3.0x | 2.5–4.0x |
| 15–30% (Moderate) | 2.0–3.5x | 3.0–4.5x | 3.5–5.5x |
| 30–50% (Fast) | 2.5–4.0x | 3.5–5.5x | 5.0–7.0x |
| 50%+ (Hyper-Growth) | 3.5–5.0x | 5.0–7.0x | 6.0–10.0x |
Based on bootstrapped and small VC-backed SaaS transactions 2024-2025. Public SaaS multiples are higher. Micro-SaaS (<$100K ARR) often 2-3x regardless of growth.
SaaS businesses are valued differently from other business types because recurring revenue creates predictable, compounding cash flows. The primary valuation metric is ARR multiple, but the multiple is heavily adjusted based on a handful of key factors that sophisticated buyers analyze in depth.
NRR measures what percentage of last year's revenue you still have this year, including expansions and contractions. NRR above 120% means your existing customers are growing faster than they churn — your ARR expands even with zero new customer acquisition. This property is called "negative net churn" and commands significant valuation premiums. A SaaS business with 130% NRR and 30% growth is often valued higher than one with 100% NRR and 50% growth, because NRR compounds while new customer acquisition requires ongoing sales spend.
The Rule of 40 combines growth rate and EBITDA margin. A company growing 30% with 15% margins scores 45 and passes the Rule of 40. Bootstrapped profitable SaaS often trades at higher multiples than VC-backed unprofitable SaaS at similar growth rates because buyers of small SaaS businesses prioritize cash flow over growth.
Monthly revenue churn above 5% makes a SaaS business very difficult to value positively. At 5% monthly churn, the average customer stays only 20 months and LTV drops sharply. Buyers applying a DCF analysis will severely discount the projected ARR stream. Getting monthly churn below 2% typically unlocks a meaningful multiple expansion.
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