How Is This Valuation Calculated?
Our calculator uses real transaction data from 2,158 SaaS deals listed across 15+ acquisition marketplaces. The median ARR multiple of 2.7x serves as the baseline, then we adjust based on your churn rate and growth:
- Low churn (<3%) increases the multiple, as it signals strong product-market fit.
- High growth (>10% MoM) increases the multiple, as buyers pay a premium for momentum.
- High churn (>7%) decreases the multiple, as it signals retention risk.
The result is a range (low to high) reflecting the spread seen in real marketplace listings. Actual valuations depend on many other factors including profitability, customer concentration, code quality, and market trends.
What Are ARR Multiples?
An ARR (Annual Recurring Revenue) multiple is the ratio of a business's sale price to its annual recurring revenue. For example, a SaaS doing $100K ARR selling for $300K has a 3x ARR multiple. Track current multiples on our ARR Multiple Tracker.
How Much Does a SaaS Business Cost?
Explore real pricing data on our SaaS business cost page, or browse deals across weekly market snapshots.