ARR Multiple Calculator
See what your ARR is worth at conservative, market and premium multiples.
The gap between your conservative and premium valuation here is $140,000,000. That spread is almost entirely explained by growth rate, net revenue retention and gross margin, the inputs a buyer or investor actually underwrites the multiple on.
A multiple is an output of your fundamentals, not an input you can claim. Use the Valuation Multiple Predictor to estimate the multiple your metrics actually justify.
About this calculator
A multiple only means anything once it's applied to a real ARR figure, "we're worth 7x" is a sentence fragment, "$140M" is a valuation. This calculator applies your own multiple alongside conservative, market and premium benchmark multiples to the same ARR, so you can see the full range a comp set implies and understand where the spread between low and high actually comes from.
How to use it
- Enter your current annual recurring revenue (ARR).
- Enter your own or a comp's reported multiple in the custom field, and conservative, market and premium benchmark multiples, from recent public comps, deal reports, or a banker's guidance.
- Read the implied valuation at each multiple, custom, conservative, market and premium.
- Look at the dollar spread between the conservative and premium valuations, that gap is the real question a diligence process resolves.
Methodology
Each valuation is simply ARR × the corresponding multiple, four independent multiplications against the same ARR figure, custom, conservative, market, and premium.
The spread between the premium and conservative valuations is shown explicitly because it's usually large, and it's driven almost entirely by fundamentals this calculator doesn't model: growth rate, net revenue retention, and gross margin are what a buyer or investor actually underwrites a multiple on.
This tool starts from a multiple you supply, it doesn't tell you which multiple your business deserves. For that, growth rate, NRR and margin need to feed into an estimate, which is a different, predictive question from the comparative one this calculator answers.
Multiples move with market conditions and company stage, a benchmark pulled from a 2021 deal report will not reflect a 2026 market. Refresh the benchmark inputs periodically rather than treating them as fixed.
FAQ
Public SaaS company reports (SEC filings, investor decks), M&A deal databases, and periodic reports from SaaS-focused banks and equity research firms all publish revenue multiple ranges by growth tier. Recent, sector-specific comps matter far more than a generic "SaaS multiples" figure pulled from an old article.
Because a multiple compresses growth rate, retention, and margin into a single number, and those three factors can vary enormously between otherwise similar-looking ARR figures. A company growing 80% YoY with 120% NRR commands a very different multiple than one growing 15% with 95% NRR, even at identical ARR.
Use it to frame the conversation, not to set the number. Sophisticated counterparties (investors, acquirers) will underwrite their own multiple from your fundamentals regardless of what benchmark range you present, this tool is for internal planning and expectation-setting, not for anchoring a negotiation.
That tool predicts what multiple your growth rate, NRR and margin justify, a forward question: "what multiple am I." This tool starts from a multiple you already have, yours, a comp's, or a benchmark, and shows what it's worth in dollars: a comparative question, not a predictive one.