Based on Comparable Transactions

Startup Valuation Calculator

Estimate your startup's enterprise value using revenue multiples from real comparable deals, segmented by industry and funding round.

Parameters

Industry

Funding Round

Current TTM Revenue (USD)

Expected Next Year TTM (USD)

SaaS Share of Revenue (%)

100%

Configure your inputs

Select an industry, funding round, and enter your revenue figures to see your estimated valuation.

How the Startup Valuation Calculator Works

This calculator estimates your startup's enterprise value using the revenue multiple method — the approach most venture investors apply from Series A onward. The estimate is built on average revenue multiples observed in comparable transactions, adjusted for the factors that move a multiple up or down:

Industry — software, fintech, marketplace, e-commerce and healthcare each carry distinct benchmark ranges.
Segment — e.g. the share of recurring SaaS revenue versus services or one-off revenue.
Growth rate — current and projected next-year revenue, which is the single largest driver of the multiple.
Size — the absolute revenue base, since multiples compress as ARR grows.
Funding stage / round — seed, Series A, B, or C+, each with its own typical multiple range.
Other parameters — retention, margin and capital efficiency that investors weigh alongside revenue.

In other words, the tool starts from the median multiple for comparable deals in your industry and stage, then weights it by your growth and segment mix. The result is an estimate, not an appraisal: real valuations also factor in net revenue retention (NRR), gross margin, and the strength of your team and market.

What Is a Revenue Multiple?

A revenue multiple expresses a company's value as a ratio of its revenue — for example, a SaaS company with $2M ARR valued at $20M is trading at a 10× revenue multiple. For early-stage startups that are not yet profitable, revenue multiples are the most practical valuation tool, because there is no meaningful EBITDA to anchor a valuation on.

As a rough reference: a 1× multiple signals low-margin, low-growth businesses; 3–5× is the middle of the pack; and 10×+ is reserved for high-growth, high-margin companies — typically software, fintech, and AI-native startups.

Revenue Multiples by Industry (2026)

Multiples vary widely by sector because investors price recurring revenue, margins, and scalability differently. The ranges below reflect the 2025–2026 funding climate after the multiple compression of 2022–2023.

Industry	Low	Median	High
SaaS (horizontal)	4×	8×	15×
Vertical / AI SaaS	10×	20×	40×
Fintech	5×	10×	20×
Marketplace	2×	5×	10×
E-commerce / DTC	1.5×	3×	5×
Healthcare / biotech	6×	9×	12×

SaaS commands a premium because of its recurring-revenue model. In 2025 the median revenue multiple for venture-backed SaaS was roughly 10.8× ARR — but with a sharp split: AI-native companies commanded 14–20×+, while traditional SaaS without an AI narrative compressed to 6–8×.

How Multiples Change by Funding Round

Earlier rounds carry higher multiples because investors are pricing potential over performance — revenue is small or nonexistent, so a small ARR base produces a large headline multiple. As ARR grows, multiples compress.

Round	Typical ARR	ARR Multiple
Seed	$100K–$1M	15–30× (story-driven)
Series A	$1M–$5M	10–20×
Series B	$5M–$20M	6–10×
Series C+	$20M–$75M	5–9×

Median pre-money valuations also hit new highs in 2025: Series A reached about $47M (top-quartile SaaS closer to $60M post-money), driven largely by the AI funding boom.

Worked Example

Suppose a B2B SaaS startup has $2M ARR, is growing 100% year over year, and is raising a Series A. Applying a 12–15× multiple (justified by triple-digit growth) gives an estimated pre-money valuation of $24M–$30M. A slower-growing company at the same ARR — say 30% YoY — would more likely see 5–7×, or $10M–$14M. This is exactly why the calculator above asks for both revenue and stage: growth and round drive the multiple as much as the raw revenue figure.

What Drives Your Multiple Up or Down

Growth rate — the single biggest driver. 100%+ YoY can justify 20×+; sub-20% growth pushes multiples below 5×.
Rule of 40 — growth % + profit margin ≥ 40. Each 10-point improvement has been linked to roughly a 1.1–2.2× increase in EV/Revenue.
Net revenue retention (NRR) — NRR above 110% is world-class and commands a premium; below 90% is a red flag.
Gross margin — 70–85% is typical for healthy SaaS.
Burn multiple — capital efficiency; a Series A median of ~1.6× is typical, sub-1× is top-decile.

Limitations of the Revenue Multiple Method

Revenue multiples are a starting point, not a verdict. They ignore profitability, capital structure, and one-off revenue. At pre-seed and seed, revenue is often too small for the method to be meaningful — investors lean on the Berkus method, scorecard, and the VC method instead. Use this calculator to get a defensible ballpark, then pressure-test it against recent comparable deals in your sector.

Frequently Asked Questions

What is a good revenue multiple for a startup?

It depends on sector and growth. A healthy, high-growth SaaS startup typically sits at 7–10× ARR, with AI-native companies reaching 14–20×+. Slower-growth businesses fall to 3–5×.

How do I calculate my startup's valuation from revenue?

Multiply your annual recurring revenue by an industry- and stage-appropriate multiple, then adjust for growth rate and retention. The calculator above does this automatically once you enter your industry, round, and revenue.

Why are seed-stage multiples higher than Series A?

Because seed investors price potential against a tiny revenue base. A small ARR figure produces a large headline multiple; as ARR scales, the multiple compresses even as the absolute valuation rises.

Are these multiples ARR or forward revenue?

The benchmarks above are trailing ARR multiples. Forward (next-12-months) revenue multiples are typically 20–30% lower.