Enter your annual revenue, growth rate, and churn rate into the calculator to determine your SaaS business valuation.
SaaS Valuation Calculation Formula
The following formula is used to calculate the valuation of your SaaS business.
Valuation = (Annual Revenue * (1 + Growth Rate / 100)) / (Churn Rate / 100)
Variables:
- Valuation is the estimated value of your SaaS business ($)
- Annual Revenue is the total revenue generated in a year ($)
- Growth Rate is the annual growth rate of your revenue (%)
- Churn Rate is the annual customer churn rate (%)
To calculate the valuation, multiply the annual revenue by the growth rate, and then divide by the churn rate.
What is SaaS Valuation?
SaaS valuation refers to the process of determining the market value of a Software as a Service (SaaS) business. This involves understanding key metrics like annual revenue, growth rate, and customer churn rate. Proper valuation helps in