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Startup Valuation Calculator

Estimate a startup's valuation using a revenue multiple.

Growing your businessStep 7 of 7

Best for: Use it to ballpark your company's worth before fundraising, or to sanity-check an offer.

Complete guide
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Input

Result

Estimate
Estimated valuation: ₹5,00,00,000
Standard formula Private — runs in your browser, no account

What to do next

Part of the 🚀 Grow a Business pathNext: Burn Rate Calculator
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More about this result
Result quality
Type
Projection
Method
Assumption-based projection
Confidence
Indicative

A forward-looking projection based on assumptions (rates, returns, time); actual outcomes will differ.

What this means

The result is an indicative valuation, not a guarantee — actual deals depend on negotiation, traction and market conditions. Treat it as a starting range.

What impacts this result most?
  1. 1.
    Revenue / ARRHigh impact

    The base the multiple is applied to.

  2. 2.
    Revenue multipleHigh impact

    Reflects growth, margins and market.

  3. 3.
    GrowthMedium impact

    Faster growth earns a higher multiple.

3 Important insights
  • Margin (on price) and markup (on cost) are not the same.
  • Your break-even depends on fixed vs variable costs.
  • A small price increase moves profit more than a small cost cut.

Most business outcomes hinge on a couple of inputs - find the lever that moves the result most.

Worth a revisit later — your costs and margins change.

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How it's calculated & sources
The Startup Valuation Calculator uses the standard formula for this calculation. It runs entirely in your browser, so your inputs are never uploaded. Figures are educational estimates, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.
Key assumptions
  • Revenue-multiple method
  • An indicative range, not a quoted price

Free & no sign-up · runs entirely in your browser. Results are estimates for general information, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.

How it works

A simple revenue-multiple valuation: ARR × multiple. SaaS multiples often range 3–10× depending on growth and margins.

Frequently asked questions

What multiple should I use?+

Faster-growing, higher-margin businesses command higher multiples. Compare with recent deals in your sector.

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Complete guide

Quick answers

Short, sourced answers to the questions people (and AI assistants) ask most.

What is Startup Valuation?
A startup valuation calculator estimates what a company is worth using a revenue multiple — the quick method investors use for early-stage and SaaS businesses.
Why does Startup Valuation matter?
It is the top line - every margin and profit figure starts from revenue.
How is Startup Valuation calculated?
It multiplies your annual revenue (often ARR) by a multiple that reflects growth, margins and market. Faster-growing, higher-margin companies command higher multiples. Formula: Valuation ≈ annual revenue (ARR) × revenue multiple.
What are common startup valuation mistakes?
Confusing revenue (sales) with profit (what is left after costs).
When should you use the Startup Valuation Calculator?
Use it to ballpark your company's worth before fundraising, or to sanity-check an offer.

What is the Startup Valuation Calculator?

A startup valuation calculator estimates what a company is worth using a revenue multiple — the quick method investors use for early-stage and SaaS businesses.

How the Startup Valuation Calculator works

It multiplies your annual revenue (often ARR) by a multiple that reflects growth, margins and market. Faster-growing, higher-margin companies command higher multiples.

Valuation ≈ annual revenue (ARR) × revenue multiple
  • revenue/ARR — Annual or annualized recurring revenue
  • multiple — Industry/growth multiple applied
  1. Enter your revenue — the total money a business earns from sales before any costs are subtracted.
  2. Enter your annual recurring revenue (arr) — the yearly value of recurring subscription revenue, usually MRR times 12.
  3. Enter your valuation — the estimated total worth of a company.
  4. Read the result, then change any input to compare scenarios instantly — the Startup Valuation Calculator recalculates as you type.

Understanding the inputs

What each value means, why it matters, and a typical range — so you can fill in the calculator with confidence.

Revenue

The total money a business earns from sales before any costs are subtracted.

Why it matters:
It is the top line - every margin and profit figure starts from revenue.
Typical range:
Varies entirely by business size.
How it affects results:
  • Higher: More to cover costs and profit, if margins hold.
  • Lower: Less to cover costs and profit.

Common mistake: Confusing revenue (sales) with profit (what is left after costs).

Annual Recurring Revenue (ARR)

The yearly value of recurring subscription revenue, usually MRR times 12.

Why it matters:
It is the headline number for valuing and planning a subscription business.
Typical range:
MRR x 12.
How it affects results:
  • Higher: A larger recurring annual base.
  • Lower: A smaller recurring annual base.

Common mistake: Counting one-time revenue in ARR, which overstates the recurring base.

Valuation

The estimated total worth of a company.

Why it matters:
It sets how much equity you give up for investment and frames any deal.
Typical range:
Often a multiple of revenue or ARR for startups; varies hugely.
How it affects results:
  • Higher: Less equity given up for the same money raised.
  • Lower: More equity given up for the same money raised.

Common mistake: Treating a formula's number as a guarantee; real deals depend on negotiation.

What impacts results most

  1. 1.
    Revenue / ARR (High impact)The base the multiple is applied to.
  2. 2.
    Revenue multiple (High impact)Reflects growth, margins and market.
  3. 3.
    Growth (Medium impact)Faster growth earns a higher multiple.

Key assumptions

  • Revenue-multiple method
  • An indicative range, not a quoted price

Revenue-multiple valuation by ARR

$250,000$1,250,000$2,000,000$3,000,000
$500,000$2,500,000$4,000,000$6,000,000
$1,000,000$5,000,000$8,000,000$12,000,000
$5,000,000$25,000,000$40,000,000$60,000,000

Worked example

Inputs: ARR $2,000,000 × revenue multiple 8 Calculation: valuation ≈ ARR × multiple Result: $16,000,000 (indicative) What it means: A starting range only — real deals depend on growth, margins and negotiation.

How Valuation connects to the concepts around it.

Equity:
An ownership stake in a company.
Dilution:
The drop in ownership percent when new shares are issued.
ARR:
The yearly value of recurring revenue (MRR times 12).
Runway:
The months a company can operate before cash runs out.

Reviewed sources & methodology

Methodology: Projection · Last reviewed June 2026.

Keywords: startup, valuation, arr, multiple.

This is an educational estimate, not financial advice. Rates, rules and figures change — verify the latest with the provider or a qualified advisor before you decide.

Reviewed by the Free Tools Galaxy editorial team · Updated June 2026 · Calculated privately in your browser.

Frequently asked questions

Is the Startup Valuation Calculator free to use?+

Yes. Every tool on Free Tools Galaxy is 100% free, runs in your browser and requires no signup.

How accurate is the Startup Valuation Calculator?+

Startup Valuation Calculator uses the standard startup valuation formula in double-precision arithmetic, so the same inputs always produce the same result and you can verify any figure by hand. It is an educational estimate — real-world outcomes depend on your actual rates, rules and assumptions.

Do you store my inputs?+

No. The Startup Valuation Calculator runs entirely in your browser. Nothing is uploaded or saved to a server.

Can I use the Startup Valuation Calculator on mobile?+

Yes — the interface is fully responsive and works on phones, tablets and desktops.

What are common mistakes to avoid?+

The most frequent mistake is mixing units. Double-check your inputs use a single, consistent unit before clicking Calculate.

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Estimate a startup's valuation using a revenue multiple.

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