Question 1

How much is my SaaS company worth?

Accepted Answer

A financial buyer prices a SaaS company on a multiple of revenue, earnings (EBITDA), or owner earnings (SDE), taken from comparable closed deals in the same revenue bracket. Under $2M ARR the median closed deal in the data is 1.8x revenue or 3.0x SDE. From $2M to $5M it is 2.2x revenue or 6.7x EBITDA. From $5M to $20M it is 2.5x revenue or 10.7x EBITDA. Where a company lands inside its bracket depends on retention, growth, profitability, and how the business runs without the founder. This calculator scores those inputs and places the company on the curve.

Question 2

What multiple do SaaS companies sell for?

Accepted Answer

In 300 closed SaaS transactions filtered to profitable targets, revenue multiples run from 1.3x at the 25th percentile to 4.1x at the 75th depending on bracket, and EBITDA multiples from 3.5x to 18.6x. Loss-making SaaS that sold for 2x to 10x revenue were venture or strategic exits and are excluded. The top of each EBITDA bracket is a handful of strategic sales, so a general estimate stops at the 60th to 65th percentile.

Question 3

Is my SaaS business ready to sell?

Accepted Answer

Buyers check the same things at each stage: clean books, a business that runs without the founder, documented churn, assignable customer contracts, and no open claims. The exit readiness score in this calculator rates 36 inputs against what buyers ask for at your ARR stage and lists the five items holding your number down, each with what to strengthen. Six deal-breaker questions show whether anything would cap the price in diligence.

Question 4

What is SDE versus EBITDA in a SaaS valuation?

Accepted Answer

SDE, seller's discretionary earnings, adds the owner's pay back to profit and is the basis buyers use for founder-run companies under about $5M ARR. EBITDA is used once the company has a management team and the founder can step away. A loss-making company is priced on revenue instead. This calculator picks the basis from your founder independence and margin, and blends revenue and earnings pricing between 0 and 25 percent margin so the first dollar of profit never drops the price.

Question 5

How is the exit readiness score calculated?

Accepted Answer

Each of 36 inputs lands in a tier worth 0 to 5 points, weighted by how much buyers care. Gross revenue retention carries the most weight. Ten maturity ladders score against the rung buyers expect at your ARR stage. The weighted total over the maximum gives a score from 0 to 100. A blank input scores zero, so every answer can only raise the score. The full weight table, the comparable deal multiples, and every rule are published on the Logic page and in the open exit-engineering repository.

Private SaaS multiple estimate

The formula

Limits

Questions