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Calculate the value of your SaaS

#### Suggested valuation

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Calculate the value of your SaaS

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This calculator helps you estimate the value of your SaaS. It's based on the idea that the valuation depends on two key numbers:

- Annual Recurring Revenue (ARR)
- Growth Rate

The formula is:

Valuation = 2 x ARR + ARR x (1+ 2.5 x Growth Rate)

In real life valuation is based on a number of other factors, but this formula and calculator gives you some ideas on how you can valuate your SaaS.

In a typical SaaS a large part of the income is recurring revenue. In your company you might call it Hosting or License. To find your ARR you must take the look at what your clients pay on an annual basis for your recurring services.

Typically you will not include startup fees and project payments into this number.

Example:

If your ARR was $100.000 at the end of 2014 and $150.000 at the end of 2015 your growth rate will be 50%.

The formula is:

ARR[-1] : ARR one year ago

ARR[now] : ARR now

Growth Rate = (ARR[now] - ARR[-1])/ARR[-1]

In our example that is:

Growth Rate = ($150.000 - $100.000)/$100.000 = 0.5 = 50%

This calculator is built using LeadDoubler and created by Morten Matras - the founder of LeadDoubler.

With LeadDoubler setting up calculators and landing pages like this one can be done in minutes using an intuitive interface allowing you to upload a spreadsheet to a cloud based service.

To ensure this calculator is kept updated as valuation formulas change (as we expect they will over time) - please contact us by sending a mail to: support (a) leaddoubler.com.

We need you to help us making this calculator better. How do you calculate the value of a SaaS?

What valuation have you actually seen?