Startup Valuation Calculator

Value an early-stage company from revenue and a sector multiple, with a growth-adjusted range.

About Startup Valuation Calculator

Revenue multiples are the standard shorthand for early-stage valuation, but they are only comparable at similar growth and margin. Scaling the base multiple by growth against a 40% baseline and margin against a 75% baseline puts a company on a like-for-like footing. Valuation is a negotiation, not a calculation — the value of this figure is the range and the sensitivity to growth, not the point estimate.

Formula

Startup Valuation

Valuation = revenue × multiple, adjusted for growth rate and gross margin

multiple: Sector revenue multiple before adjustment
growth factor: Growth relative to a 40% baseline

Worked example

With the default values below, Startup Valuation Calculator returns Indicative Valuation of $19,968,000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual recurring revenueminimum 0: 1,200,000
Revenue multipleaccepts 0.1–50 x: 8 x
Year-on-year growthaccepts 0–100 %: 80 %
Gross marginaccepts 0–100 %: 78 %

Results

Indicative Valuation: $19,968,000
Growth-Adjusted Multiple: 16.64 x
Low End of Range: $13,977,600
High End of Range: $25,958,400
Valuation per Unit of Revenue: 16.64

Step by step

1Values used
2Startup Valuation
3Indicative Valuation= 19,968,000
4Growth-Adjusted Multiple= 16.64 x
5Low End of Range= 13,977,600
6High End of Range= 25,958,400
7Valuation per Unit of Revenue= 16.64

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 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
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.

Frequently Asked Questions

How is Startup Valuation calculated?

Valuation = revenue × multiple, adjusted for growth rate and gross margin Revenue multiples are the standard shorthand for early-stage valuation, but they are only comparable at similar growth and margin. Scaling the base multiple by growth against a 40% baseline and margin against a 75% baseline puts a company on a like-for-like footing.

Why does Startup Valuation matter?

Valuation is a negotiation, not a calculation — the value of this figure is the range and the sensitivity to growth, not the point estimate.

What values do I need to enter?

This calculator takes 4 inputs: Annual recurring revenue, Revenue multiple, Year-on-year growth, Gross margin. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.