Typical Multiples at $10k MRR
Micro-SaaS businesses at $120k ARR are typically valued on a multiple of ARR or SDE (seller’s discretionary earnings). Quality of revenue matters more than size:
- 2.5x–4.5x ARR for profitable, low-churn products with diversified customers.
- 1.5x–2.5x ARR if churn is high (>7% monthly) or the product depends on one acquisition channel.
- 4x–6x SDE when you operate efficiently with solid margins (20–30%) and clean books.
Metrics Buyers Check
- Net revenue retention above 90%.
- Payback period under 12 months.
- Low support load per customer.
- Recurring vs. services revenue split.
Red Flags at $10k MRR
- Founder-only sales with no repeatable motion.
- Contracts that allow easy cancellation mid-cycle.
- Unverified churn or revenue numbers.
- One integration partner driving >40% of revenue.
Ways to Lift Value
- Bundle annual plans to improve cash flow and stickiness.
- Document SOPs for onboarding, support, and outages.
- Add lightweight add-ons that raise ARPU without extra support.
- Prove a second acquisition channel (SEO, affiliates, or partner marketplace).
Sample Valuation Math
Use a simple back-of-the-napkin check before negotiating:
Scenario A: Strong Fundamentals
MRR: $10k | Growth: 8% MoM | Net margin: 25% | Churn: 3%
Likely range: 3.5x–4.5x ARR ($420k–$540k)
Scenario B: Choppy Metrics
MRR: $10k | Growth: 1% MoM | Net margin: 5% | Churn: 8%
Likely range: 1.5x–2.3x ARR ($180k–$276k)
Checklist Before You List
- Export clean MRR, churn, and cohort reports for the last 12 months.
- Separate SaaS revenue from services or one-off fees.
- Summarize acquisition channels with CAC and payback.
- Document the tech stack, dependencies, and uptime history.
- Prepare a transition plan showing how the business runs without you.