SaaS Valuation Calculator
Estimate your SaaS company's valuation based on ARR, growth, net revenue retention, churn, and profitability. Uses 2026 public and private SaaS comps.
MRR x 12. Enter 0 if pre-revenue.
Revenue from existing customers after churn + expansion. 100% = no net change. Top SaaS: 120%+.
Percentage of MRR lost each month. Best-in-class: <2%. SMB average: 3-5%.
Revenue minus COGS. Median SaaS: 70-80%.
Estimated Valuation
SaaS Health Score
| Metric | Below Average | Average | Best-in-Class |
|---|---|---|---|
| YoY Growth | <30% | 30-80% | 80%+ |
| Net Revenue Retention | <100% | 100-120% | 120%+ |
| Monthly Churn | >5% | 2-5% | <2% |
| Gross Margin | <60% | 60-75% | 75%+ |
| ARR Multiple (2026) | 3-6x | 6-15x | 15-30x+ |
How SaaS Valuations Work in 2026
SaaS valuations are driven by a simple formula: ARR multiplied by a revenue multiple. That multiple is where the nuance lives. In 2026, the median public SaaS company trades at roughly 7x forward revenue, but the range spans from 3x for slow-growth legacy players to 30x+ for AI-native SaaS companies growing over 100% annually.
Private SaaS valuations typically carry a premium at early stages (investors pay for potential) and a discount at later stages (the liquidity discount). This SaaS valuation calculator accounts for both dynamics by adjusting multiples based on your company's stage, vertical, and key operating metrics.
The Metrics That Move Your SaaS Multiple
Growth rate is the primary driver, but it's not the only one. Net revenue retention (NRR) above 120% signals strong product-market fit and expansion revenue — two things investors pay a premium for. Monthly churn below 2% indicates a sticky product that compounds rather than leaks. Gross margins above 75% confirm a true software business model, not a services company disguised as SaaS.
The "Rule of 40" remains the benchmark investors use most: your growth rate plus your profit margin should exceed 40%. A company growing 60% with a -10% margin scores 50 — above the bar. This calculator incorporates all these SaaS valuation metrics to produce a realistic estimate based on current market conditions.
SaaS Valuation Multiples by Vertical in 2026
AI-native SaaS commands the highest multiples in 2026, with top-quartile companies valued at 20-35x ARR. Cybersecurity SaaS remains a premium vertical at 15-25x, driven by rising threat landscapes and mandatory compliance spending. Developer tools and infrastructure SaaS benefit from strong retention metrics, typically earning 10-20x multiples.
Vertical SaaS — software built for specific industries like construction, legal, or healthcare — trades at 8-18x due to smaller addressable markets but often superior retention and pricing power. Horizontal SaaS faces the most competition, with multiples ranging from 6-15x depending heavily on growth and market positioning. Use this free SaaS valuation tool to see exactly where your company lands.
SaaS Valuation Calculator vs. Real-World Deals
No calculator replaces a real negotiation. Actual SaaS valuations depend on competitive dynamics (how many investors want in), strategic value (does the acquirer need your product), and market timing. The best SaaS valuation estimate is a range, not a point — which is exactly what this tool provides.
For benchmarking, compare your result against recent SaaS funding rounds covered in our funding tracker. And if you're evaluating a startup investment, pair this with our general startup valuation calculator for a second data point.