CheckPre

B2B SaaS Valuation Calculator

What a bootstrapped B2B SaaS sells for: SDE, EBITDA and an exit multiple adjusted for growth, churn, seat pricing and founder time.

Updated · By Niraj Kumar · 4 sources

Revenue

$

Average of the last three months, before payment fees and platform shares.

%
−10%30%

After churn. 3% a month is 43% a year.

%
0%20%

MRR lost each month to cancellations and downgrades, as a share of MRR.

$
months

Months of revenue a buyer can verify.

Costs and margin

%
0%100%

Revenue left after hosting, payment fees, platform shares and model or API costs.

$

Tools, contractors, support staff. Leave out your own pay and marketing.

Acquisition

$

0 if growth is all organic.

Risk and founder

Support, development, marketing: everything a buyer would take over.

$/h

What a buyer would pay a hire or contractor. Used for EBITDA.

Platform dependencyPlatform dependency
%
0%100%
Estimated exit value$351,000Range $304,000 to $398,000
SDE, a year
$93,600
Profit before your pay, valued at 3.75×
EBITDA, a year
$31,200
After $62,400 to replace your 20 hours a week; 11.3× EBITDA
MRR multiple
23.4×
1.95× ARR
Revenue cross-check
$662,000
$180,000 ARR × 3.67×; the estimate weighs profit 100%, revenue 0%
LTV:CAC
26.2
LTV $3,280, CAC $125, paid back in 1.3 months
How the multiple is builtTurns of SDE added or taken off, largest first.
FactorTurns
Base: SDE $50k to $100k3.00×
Growing 30 to 60% a year+0.40
LTV:CAC 3 or more+0.25
Gross margin 80% or more+0.10
Churn 2 to 4% a month0
Part-time founder, 5 to 20 hours0
Two years or more of history0
Platform risk: independent0
No customer over 10% of revenue0
SDE multiple3.75×
From revenue to SDE and EBITDA, a year
ARR (MRR × 12)$180,000
Cost of revenue (18%)-$32,400
Gross profit$147,600
Operating costs-$36,000
Paid marketing-$18,000
SDE$93,600
Founder's time (20 h × $60 × 52)-$62,400
EBITDA$31,200
SDE multiple for each example businessEach vertical's starting example on these pages. Hover or focus a row for its value and churn.
  1. 1Developer tool / API4.8× SDE
  2. 2B2B SaaS3.8× SDE
  3. 3WordPress plugin3.0× SDE
  4. 4Shopify app3.0× SDE
  5. 5Chrome extension2.1× SDE
  6. 6Productised service1.8× SDE
  7. 7Notion / no-code templates1.5× SDE
  8. 8AI wrapper / GPT app1.5× SDE

How is a micro-SaaS valued?

A three-year-old B2B SaaS on $15,000 MRR with 3% monthly churn and a part-time founder is worth about $351,000 (3.8× SDE). B2B buyers pay more for low churn and spread-out customers than for raw growth, because seats renew with the company.

SDE = MRR × 12 × gross margin − (operating costs + marketing) × 12 EBITDA = SDE − founder hours × hourly rate × 52 SDE multiple = size-band base + growth + churn + founder + age + platform + concentration + LTV:CAC + margin (1.5× to 8×) value = w × SDE × SDE multiple + (1 − w) × ARR × ARR multiple, w = 0 at 10% SDE margin rising to 1 at 40%

This page uses the same method as the Micro-SaaS Valuation Calculator, which explains each term and assumption in full.

Worked example

A three-year-old B2B SaaS on $15,000 MRR at $120 a seat-month, growing 3% a month net, with 3% monthly churn, 82% gross margin, $3,000 a month of tools and contractors, $1,500 of ads bringing 12 customers, and a founder working 20 hours a week.

  1. 1ARR: $180,000; gross profit at 82%: $147,600
  2. 2SDE: $147,600 − $54,000 of costs and marketing = $93,600
  3. 3Base multiple for SDE of $50k to $100k: 3.0×
  4. 4Adjustments: growing 30 to 60% a year +0.40; lTV:CAC 3 or more +0.25; gross margin 80% or more +0.10
  5. 5SDE multiple: 3.75×, so $93,600 × 3.75× = $351,000
  6. 6Revenue cross-check: 3.7× ARR = $662,000; weight on profit 100%

About $351,000, within $304,000 to $398,000: 23.4× MRR, and 11.3× EBITDA after paying $62,400 a year for the founder's hours.

Frequently asked questions

Do B2B SaaS businesses sell for more than B2C?

Usually, because businesses churn less than consumers and pay more per account. Monthly churn of 2 to 3% is normal in B2B and earns a neutral or positive adjustment here; consumer apps often run 6 to 10%, which costs most of a turn of multiple. The exception is customer concentration: one large account above 20% of revenue takes value off.

Do annual contracts raise a B2B SaaS valuation?

Yes, indirectly. Annual plans cut churn, since customers decide once a year rather than every month, and bring cash forward, which buyers like in working capital. Enter churn as the monthly equivalent of your renewal rate: 80% annual renewal is roughly 1.8% a month.

What multiple does a B2B SaaS sell for?

For the business on this page, about 3.8× SDE, or 23× MRR: $351,000 on $15,000 of MRR and $93,600 of annual SDE. Change the inputs above to your own figures; churn, growth and founder hours move the multiple most.

Sources

Related calculators

More in Finance