Choose the baseline yourself
The tool does not claim a live market multiple. Use a researched comparable range appropriate to date, stage, geography, and business model.
Startup finance tool
Startup valuation calculator
Build an illustrative ARR-multiple range and see how operating quality changes the selected baseline.
- Free to use
- Runs in your browser
- No details saved
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Enter your assumptions
This simplified private-company estimate is not an appraisal, investment offer, fairness opinion, or financial advice.
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This simplified private-company estimate is not an appraisal, investment offer, fairness opinion, or financial advice.
How to use this tool
Use the output as a decision prompt
Revenue multiples are one of several ways to discuss software-company valuation. This tool adjusts a user-selected ARR multiple modestly based on reported growth, gross margin, and net revenue retention, then presents a range around the adjusted estimate.
Private-company valuation also depends on market conditions, revenue quality, concentration, churn, product risk, margins, governance, intellectual property, geography, financing terms, investor demand, and negotiation. Do not treat a formula as a transaction value.
Method and interpretation
What the calculation is designed to show
Apply bounded quality adjustments
Growth, margin, and retention influence the estimate within limits so one optimistic input cannot dominate the result.
Present a range
A range communicates uncertainty more responsibly than a single precise figure for an illiquid private company.
Useful applications
When this tool can help
Revisit the calculation when assumptions or evidence change. Keep the inputs with the result so another founder or adviser can understand the reasoning.
- Explore fundraising scenarios
- Prepare a valuation discussion
- Test operating improvements
- Understand multiple sensitivity
- Compare dilution scenarios separately
- Identify due-diligence questions
Questions and limitations
Understand what the result cannot decide
Is this a reliable startup valuation?
It is an educational scenario, not a professional valuation. Actual financing and transaction values depend on due diligence, terms, market conditions, negotiation, and many company-specific factors.
Where should I get the ARR multiple?
Research recent comparable public and private transactions with similar model, scale, growth, margins, geography, and date. Adjust carefully because disclosed headline multiples may omit important terms.
Can pre-revenue startups use this calculator?
No. An ARR-multiple approach requires recurring revenue. Pre-revenue valuation commonly depends more on team, market, evidence, technology, competition, financing demand, and negotiated ownership.
Does valuation equal the amount I can raise?
No. Raise size depends on the company plan, runway, milestone, investor appetite, dilution, and financing terms. Valuation and capital raised are related but different decisions.
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