Micro-SaaS Valuation: Under $1M ARR

Small doesn’t mean small multiples. Here’s how to make a sub-$1M ARR SaaS attractive.

Typical Micro-SaaS Multiples

For businesses between $100k and $1M ARR, buyers focus on stability and ease of ownership:

  • 2x–4x ARR for profitable, low-complexity tools with low churn.
  • 1.5x–3x ARR if revenue is tied to one channel or founder-only support.
  • 4x–6x SDE when margins and documentation are strong.

What Buyers Love

  • Simple onboarding with low support tickets.
  • Diverse customer base (no logo above 10%).
  • Clear pricing page with annual options.
  • Automated billing, backups, and monitoring.

Common Risks

  • Dependence on a single API or platform policy.
  • Founder-coded stack with no documentation.
  • Seasonal revenue swings without reserves.
  • Limited growth channels beyond word of mouth.

Quick Upgrades

  • Add usage-based add-ons to lift ARPU.
  • Publish a public roadmap and changelog.
  • Ship better onboarding (checklists, videos, templates).
  • Share monthly KPI updates with prospective buyers.

Docs to Have Ready

  1. MRR/ARR trends with churn, expansion, and downgrades.
  2. Support load per 100 customers and staffing plan.
  3. Server costs and uptime logs.
  4. Marketing funnel by channel with CAC and payback.

About the author

Amanda White

Partner & valuation lead specializing in diligence-ready SaaS benchmarks and buyer negotiations.

Role: Founder, SaaS Valuation App

Expertise: ARR quality, AI-era multiples, founder-led exits, and buyer readiness.

LinkedIn Profile

Last updated: January 15, 2026

Questions? Email support@saasvaluation.app.