SaaS multiples in 2026 land in a 2.5x–5x annual revenue band for indie and micro-SaaS, with a growth premium pushing standout deals above 5x and a churn discount pulling weak retention below 2x. The revenue multiple (same as the ARR multiple for pure recurring SaaS) is the anchor buyers open with; profit (SDE) multiples come in second when margins are clean.
The table below is the median average SaaS multiple by MRR band, drawn from Startup Index listings with TrustMRR-verified revenue, recent indie deal comps, and public broker data. Use it as the starting point, then apply the growth and churn adjustments covered below.
| MRR band | Revenue multiple | Profit (SDE) multiple | Notes |
|---|---|---|---|
| Under $1k MRR | 1.5x – 2.5x | 2x – 3x | Buyer skepticism is high; often priced on future potential. |
| $1k – $5k MRR | 2.5x – 3.5x | 3x – 4x | Sweet spot for indie acquirers. Payback typically 30–40 months. |
| $5k – $20k MRR | 3x – 4.5x | 3.5x – 5x | Multiples expand as churn data becomes credible. |
| $20k – $100k MRR | 3.5x – 5x | 4x – 6x | Broker territory; buyers underwrite growth explicitly. |
| $100k+ MRR | 4x – 7x+ | 5x – 10x+ | Institutional PE and strategics enter the mix. |
The revenue multiple is annual recurring revenue times the number in the table. The profit multiple is SDE (seller discretionary earnings) times the number. For most indie SaaS with a solo operator, SDE is close to net profit.
Adjust the range down for high churn, single-channel traffic, or founder dependency. Adjust up for verifiable growth, low churn, and diversified customers. The valuation calculator wires these adjustments into a single fair-price range.
Across sub-$50k MRR indie SaaS closed in the last twelve months, the average SaaS multiple sits around 3.2x annual revenue. Deals with sub-3% monthly churn and six straight months of growth push above 4x. Flat or declining MRR compresses toward 2x. Profit multiples for the same band cluster around 3.5x–4.5x SDE. This is meaningfully below the 2021 peak (~4.5x average) and roughly in line with 2018–2019 norms.
For a pure-recurring SaaS, revenue multiple and ARR multiple are the same number — ARR is just MRR × 12, and total revenue is essentially ARR when there is no one-off services line. The two only diverge when a SaaS has meaningful setup fees, consulting, or transactional revenue.
Profit multiple (SDE or EBITDA) is a different lens: it multiplies annual earnings, not revenue. Under $500k ARR, most indie buyers anchor on revenue multiple because margin structures are relatively uniform. Above $1M ARR, buyers switch to SDE or EBITDA because opex assumptions diverge and revenue multiples become misleading.
Across sub-$50k MRR indie SaaS closed in the last twelve months, the average revenue multiple sits around 3.2x annual revenue. Businesses with sub-3% monthly churn and clear growth push above 4x; flat or declining MRR trades between 1.5x and 2.5x. Profit (SDE) multiples for the same band cluster around 3.5x to 4.5x.
For SaaS under 500k ARR, 2.5x to 3.5x annual revenue is typical. Businesses with sub-3 percent monthly churn and clear growth cross 4x. Declining or plateaued MRR trades between 1.5x and 2.5x.
For a small SaaS (under $500k ARR), a good ARR multiple is 3x to 4x when growth is at least 5% month over month and monthly churn is under 4%. Above $500k ARR with clean retention data, 4x to 6x ARR is defensible. ARR multiple and revenue multiple mean the same thing for a pure-recurring SaaS.
Compared to the 2021 peak, yes — indie SaaS multiples came off roughly 25–35% and have been stable at that lower band for the last four quarters. Compared to 2018–2019 pre-boom norms, they are close to flat. The average SaaS multiple in the sub-$50k MRR range is roughly 3.2x today, versus about 4.5x in early 2022.
Multiply MRR by 12 to get ARR. Multiply ARR by the revenue multiple for the MRR band in the table above. For a $4k MRR SaaS in the $1k–$5k band, that is $48k ARR × 2.5x to 3.5x = $120k to $168k fair range. Then adjust: subtract 10–20% for high churn or founder dependency, add 10–20% for verified growth.
Use profit multiple when margins are stable and expenses are cleanly separable. Use revenue multiple when the business is still growing fast or margins are unusual because of one-off costs. Buyers usually compute both and negotiate on whichever is friendlier.
Buyers cannot verify long term retention on a business with only a few months of data, and single-founder risk is higher. That uncertainty is priced in as a lower multiple.
Growth is the single biggest multiple driver after churn. A flat SaaS trades at 2x to 3x revenue. One growing 10 percent month over month for six straight months can command 4x to 6x. Paid-growth spikes get discounted.
10 to 20 percent for high founder dependency, 10 to 30 percent for churn above 5 percent monthly, 10 to 20 percent for a single traffic source, and 5 to 15 percent for a niche tech stack that limits the buyer pool.
No. Mobile apps trade at 1.5x to 3x annual revenue because app store policy risk and platform concentration are higher. Subscription apps with strong RevenueCat retention sit at the top of that range.