SaaS & App Valuation Guide
How much is your SaaS business or mobile app worth? Most small SaaS trades at 2–5x last-twelve-months revenue, and mobile apps at 1.5–3x. This guide breaks down what moves multiples up or down, and how to price a listing that actually sells.
1. Start with a revenue multiple
Multiply your last-twelve-months revenue by the baseline for your category — 3x for a growing SaaS with under 5% monthly churn, 2x for a stable but flat SaaS, 1.5–2x for an indie mobile app. That's your anchor price. Everything else adjusts up or down from there.
2. Cross-check with a profit multiple
Calculate seller's discretionary earnings (revenue minus true operating costs, add back founder salary) and multiply by 3–5x. If both methods land close to each other, the number is defensible. If they diverge sharply, use the lower one as your asking price to keep buyer conversations serious.
3. Apply the discount factors
Take honest deductions for concentration risk (one customer > 20% of revenue), founder dependency (would revenue drop without you?), churn above 5% monthly, and single-channel traffic. Each factor is worth roughly a 10–20% discount to the headline multiple.
4. Price for a two-to-four week close
Overpriced listings sit for months and eventually clear at a discount anyway. Pricing 10% under the top of your range usually generates enough serious inbound to close in two to four weeks — worth more than an extra 10% on paper that never lands.
5. Publish verified numbers, not projections
Buyers on Startup Index and elsewhere discount projections to zero. Show verified MRR, last-30-day revenue, and margin from your live payment provider — that's what supports the multiple.
Valuation — FAQ
How much is my SaaS worth?
Most small SaaS businesses sell for 2–5x last-twelve-months revenue or 3–6x seller's discretionary earnings. Multiples move up with low churn, positive growth, and no founder-dependency, and down with concentration risk or declining MRR.
What is a good SaaS revenue multiple in 2026?
For SaaS under $500k ARR, 2.5–3.5x annual revenue is typical. Businesses with sub-3% monthly churn and clear growth trend cross 4x; declining or plateaued MRR trades at 1.5–2.5x.
Revenue multiple vs profit multiple — which should I use?
Use profit multiple (SDE or EBITDA) 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 calculate both.
How is a mobile app valued differently from a SaaS?
Mobile apps trade at lower multiples than SaaS — usually 1.5–3x annual revenue — because app-store policy risk and platform concentration are higher. Subscription apps command premium over one-time-purchase apps.
What discounts should I expect against a headline multiple?
Common discounts: 10–20% for high founder-dependency, 10–30% for churn above 5% monthly, 10–20% for a single traffic source, and 5–15% for a niche tech stack that limits the buyer pool.
How do buyers verify my valuation?
Serious buyers ask for a live Stripe or RevenueCat screen-share, a P&L for the last 12–24 months, and a customer-cohort export to check retention. Everything you show should match your verified numbers on Startup Index.
Should I use a broker to value my SaaS?
For deals over $250k a broker can often justify their 10–15% fee through wider distribution. Below that, using a marketplace like Startup Index (0% fee) and pricing from public multiples usually nets you more after fees.
What's a fair multiple for a $2k MRR SaaS in 2026?
A $2k MRR ($24k ARR) SaaS with clean churn (under 5% monthly) and 12+ months of history typically sells for 2.5–3.5x annual revenue — so roughly $60k–$84k asking price. Faster growth, longer history, or diversified customers push toward 4x; concentration or high churn pulls it below 2x.
How does growth rate affect a SaaS valuation?
Growth is the single biggest multiple driver after churn. A flat SaaS trades at 2–3x revenue; one growing 10% month-over-month for six straight months can command 4–6x. Buyers pay a premium for compounding, but only if the growth is organic and verifiable — paid-growth spikes get discounted.
What multiple should mobile apps sell for?
Mobile apps typically sell for 1.5–3x annual revenue — lower than SaaS because retention is usually weaker, platform risk (Apple/Google policy changes) is higher, and monetization skews toward in-app-purchase rather than recurring subscriptions. Subscription apps with strong RevenueCat retention sit at the top of the range.
How does churn impact valuation?
Every 1% of extra monthly churn roughly cuts multiples by 0.3–0.5x. A SaaS with 2% monthly churn is a very different asset from one with 8%: the low-churn one compounds and justifies 4x+ revenue, the high-churn one is closer to 1.5x. Cohort retention exports are the fastest way to see the truth.
Are SDE, EBITDA, and profit multiples the same?
Not quite. SDE (seller's discretionary earnings) adds the owner's salary back to profit — most common for solo-operated micro-SaaS. EBITDA strips interest, tax, and depreciation, used on larger businesses. Profit multiple usually means SDE for indie deals. Always confirm which definition a valuation uses before comparing.
How do I calculate my SaaS's asking price?
Take verified annual revenue times a comparable multiple (2.5–4x for most small SaaS), or annual profit times a profit multiple (3–5x). Cross-check both, pick the more defensible number, then discount 10–15% if you want a fast sale. The valuation guide covers the adjustments in detail.