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Revenue Multiple Valuation Calculator

Work out revenue multiple valuation instantly with clear inputs, formula shown and shareable results.

About Revenue Multiple Valuation Calculator

Revenue multiples are shorthand for a discounted cash flow that nobody wants to build. Because the multiple a market pays depends mainly on growth and net revenue retention, this calculator adjusts a base multiple up or down from a 40% growth, 100% retention reference point.

Formulas

Base valuation

Value = ARR x Revenue multiple

Quality adjustment

Adjustment = 1 + (Growth% - 40)/400 + (NRR% - 100)/400, bounded 0.5x to 2x

Worked example

With the default values below, Revenue Multiple Valuation Calculator returns Quality-adjusted valuation of $25,920,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual recurring revenue
4,000,000
Revenue multiple
6
Year-on-year growth
60
Net revenue retention
112

Results

Quality-adjusted valuation
$25,920,000.00
Valuation at the entered multiple
$24,000,000.00
Implied revenue multiple
6.48
Growth and retention adjustment
1.080

Step by step

  1. 1Values used
  2. 2Base valuation
  3. 3Quality adjustment
  4. 4Quality-adjusted valuation= 25,920,000.00
  5. 5Valuation at the entered multiple= 24,000,000.00
  6. 6Implied revenue multiple= 6.48
  7. 7Growth and retention adjustment= 1.080

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative valuation heuristic only. Multiples are market-dependent and the quality adjustment is a simplification. Not investment advice or a valuation opinion.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative valuation heuristic only. Multiples are market-dependent and the quality adjustment is a simplification. Not investment advice or a valuation opinion.

Frequently Asked Questions

Why is ARR preferred to total revenue?

Because recurring revenue is predictable. Services and one-off revenue are usually valued at a much lower multiple, if at all.

What multiple is realistic?

It moves with the market — public SaaS has ranged from about 4x to over 20x forward revenue in a decade. Anchor on current comparables, not a past peak.

Related Calculators

Revenue Multiple Valuation Calculator | Calcrivo