What SaaS businesses actually sell for, by MRR band. Ranges are pulled from recent indie deals, our own listings on Startup Index, and public broker data.
| 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.
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.
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.
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.
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.