How to Value My SaaS Company

By Amanda White | August 19, 2025

Do you own a SaaS company and want to know its value? This guide explains how to value my SaaS company using proven metrics and valuation methods.

Start with Core SaaS Metrics

Track monthly recurring revenue (MRR), annual recurring revenue (ARR), churn rate, and the LTV/CAC ratio. These metrics show the health of your subscription base and inform potential buyers.

Apply the Right Valuation Multiples

Most SaaS companies are valued using revenue multiples. Compare your growth rate and profit margins to similar deals to estimate a multiple that fits your business.

Check the Rule of 40

Investors love companies that meet the Rule of 40, where growth rate plus profit margin equals 40 or more. It's a quick way to judge balance between growth and efficiency.

Use Valuation Calculators

Get an estimate instantly with our free SaaS valuation calculator, or unlock deeper analysis with the pro valuation calculator that includes advanced metrics and exportable reports.

Knowing how to value my SaaS company empowers you to negotiate confidently and plan your next strategic move. Keep refining your metrics and revisit your valuation as the market evolves.