SaaS valuation calculator
Small SaaS businesses usually sell for a multiple of annual profit (seller discretionary earnings). Recurring revenue, low churn and a product that runs without you push the multiple up; a young product or one that needs a lot of your time pulls it down.
Revenue minus costs, before paying yourself.
estimated value
$79,000–$127,000
3.3–5.3× annual profit
A starting point from typical SaaS multiples, not an appraisal.
What moves the price of a SaaS
The calculator starts from 3.0–5.0× annual profit for this type and adjusts for age, owner hours and growth.
Churn and retention
Buyers pay for revenue that stays. Low monthly churn and annual plans make recurring revenue worth more.
Growth
Revenue that is still growing month over month earns a higher multiple than flat or shrinking revenue.
Owner time
A product that needs a few hours a week is worth more than one that is a full-time job.
Dependencies
Reliance on one platform, API or big customer is a risk buyers price in.
Asking prices on StartExus right now
From 170 SaaS businesses for sale today. These are asking prices, not sale prices; figures from around the web are as the owners stated them.
- for sale now
- 170
- median asking price
- $4,900
- median × annual revenue
- 2.7×
- pre-revenue
- 71%
Questions
- How are small SaaS businesses valued?
- Usually as a multiple of annual profit (seller discretionary earnings). Our calculator starts from a typical range for SaaS and adjusts for age, owner hours and growth.
- Can I sell a SaaS with no revenue?
- Yes. Pre-revenue SaaS sells for what has been built: the code, the domain, the brand and any users. Price it against the time and money a buyer would spend building the same thing.
- Is this an appraisal?
- No. It is an estimate from typical multiples, a starting point for setting a price. What a buyer pays depends on due diligence and negotiation.