MRR to valuation calculator
Enter your monthly recurring revenue and the ARR multiple you want to test. Nothing you type is sent anywhere.
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Your assumption, e.g. 3 to 5. It is not a market price.
Fill in the numbers above to see the result.
How it is worked out
ARR (annual recurring revenue) is MRR times 12. A valuation multiple is applied to ARR: at 4×, $1,000 of MRR means $12,000 of ARR and a $48,000 valuation.
The multiple is your assumption, not a market price. What a buyer pays depends on growth, churn, profit, how much of the work runs without you, and the buyer. That is why the calculator also shows one turn below and above your multiple.
Questions
- How is a SaaS valuation worked out from MRR?
- Multiply MRR by 12 to get ARR, then multiply ARR by a valuation multiple. The multiple is the part that changes from deal to deal.
- What multiple should I use?
- There is no single right number. Test a few: a business with fast growth, low churn and steady profit is usually valued at a higher multiple than one without.
- Is this a real valuation?
- No. It is arithmetic on the numbers you enter. Use it to see how MRR and the multiple move the result, not as an offer or an appraisal.
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