Buyer Q&A

What Multiple Do Small SaaS Sell For?

Small SaaS sell at 2–5x annual recurring revenue, with the median around 3x ARR. Growing SaaS with strong margin push toward 4–5x; declining or high-churn SaaS trade at 1.5–2.5x. The exact multiple is driven by five variables in order of impact: growth trend, churn rate, margin, traffic source, and age.

Live distribution across Startup Index inventory

BucketCount
Under 2x ARR9 listings · 30%
2–3x ARR3 listings · 10%
3–4x ARR6 listings · 20%
4–5x ARR2 listings · 7%
5x+ ARR10 listings · 33%
Median multiple across 30 SaaS listings: 3.8x ARR

The five variables in order

  1. Growth trend. Verified 5–10% MoM growth adds 1–2x to the multiple. Flat MRR sits at the median. Declining MRR discounts 0.5–1.5x.
  2. Churn rate. Under 3% monthly = premium. 3–5% = normal. 5–8% = discount 0.5–1x. Above 8% = fixer territory.
  3. Margin. 70%+ margin adds 0.5–1x. 30–50% is normal at median. Under 30% pulls the multiple down, especially if margin was assumed rather than seller-certified.
  4. Traffic source. Organic SEO adds 0.5–1x. Referral/word-of-mouth adds 0.25–0.5x. Paid ads deducts 0.5–1x (you inherit CAC).
  5. Age. Under 12 months caps at 2.5x. 12–24 months earns 2.5–3.5x. Over 24 months earns 3–4.5x with proven history.

How to apply this to a listing

Start at 3x ARR (the median). Add or subtract 0.25–1x per variable above. A SaaS with 8% MoM growth (+1.5x), 2% churn (+0.25x), 65% margin (+0.5x), 90% organic traffic (+0.75x), and 3 years old (+0.5x) rebuilds to a defensible 6x ARR — the premium end. A SaaS with flat MRR (0), 6% churn (-0.5x), 35% margin (0), paid ads (-0.75x), and 10 months old (-0.5x) rebuilds to about 1.25x ARR — the fixer end. Most listings land in the middle 2.5–3.5x band.

Sample SaaS on Startup Index

ClaudeKit logo

ClaudeKit

SaaS
Founded
JUN 2026

A toolkit that turns Claude Code into a working team, with slash commands, skills and subagents for coding, marketing, video, seo, ecommerce and trading.

Asking
$50K
3.8x rev
Money back / yr
15.5%
~$7.8K/yr profit
Payback
77.2 mo
MRR$661
30d Rev$1.1K
Active Subs30
Margin98%
high confidence
MyAgentMail logo

MyAgentMail

SaaS
Founded
APR 2026

MyAgentMail is a transactional email infrastructure platform for developers and businesses building AI agents. We provide email APIs, IMAP/SMTP access, and custom domain management so that AI agents can programmatically send, receive, and manage email on behalf of their users. Our customers are developers, startups, and enterprises who need to equip their AI agents with dedicated email addresses for transactional use cases

Asking
$35K
14.3x rev
Money back / yr
6.5%
~$2.3K/yr profit
Payback
185.1 mo
MRR$199
30d Rev$204
Active Subs1
Margin95%
high confidence
Dooken logo

Dooken

SaaS
Founded
NOV 2025

High-quality static ads for your ad campaigns. Stop prompt engineering in AI chats. Upload your product and brand assets – Dooken automatically generates variations that truly perform.

Asking
$65K
1.8x rev
Money back / yr
33.0%
~$21.5K/yr profit
Payback
36.3 mo
MRR$3K
30d Rev$3K
Active Subs60
Margin60%
high confidence
Maverick Intelligence, Inc. logo

Maverick Intelligence, Inc.

SaaS
Founded
DEC 2025

Maverick Intelligence identifies who visit your website. • Maverick Intelligence identifies exactly where they come from too (organic content, paid ads, LLMs like claude or chatgpt, email lists). • Sales and Marketing teams love it to find anonymous site visitors and reach out to them. $8k MRR on stripe plus additional $3k MRR via monthly invoice.

Asking
$650K
5.6x rev
Money back / yr
10.2%
~$66.1K/yr profit
Payback
118.0 mo
MRR$7.9K
30d Rev$9.5K
Active Subs20
Margin70%
high confidence
Voicerr AI logo

Voicerr AI

SaaS
Founded
FEB 2025

Voicerr.ai lets agencies launch and scale a fully white-labeled AI voice calling business — branded dashboards, automated billing, and lead-gen campaigns included — without building any infrastructure themselves.

Asking
$60K
1.3x rev
Money back / yr
34.0%
~$20.4K/yr profit
Payback
35.3 mo
MRR$1.8K
30d Rev$3.8K
Active Subs87
Margin95%
high confidence
TrackAI logo

TrackAI

SaaS
Founded
JUN 2025

TrackAI is an AI calorie tracking app for iOS and Android: snap a photo of your meal and instantly get calories and macros. For busy people to stay consistent. Launched June 2025, it grew to $20k MRR ($244k ARR), 4,700+ paying subscribers and 327k+ installs in 12 months - profitable since month two and fully self-funded.

Asking
$600K
2.1x rev
Money back / yr
4.1%
~$24.4K/yr profit
Payback
294.7 mo
MRR$20.4K
30d Rev$23.6K
Active Subs4,790
Margin10%
high confidence

Follow-up Questions

What's the median multiple for small SaaS?

Around 3x annual recurring revenue (0.25x monthly revenue × 12). Public marketplace data from Acquire.com, Flippa, MicroAcquire, and Startup Index converges on the 2.5–3.5x band for the median completed sale under $500k. Tails on either side are driven by growth (up) or churn (down).

Why do brokers quote higher multiples than actual sales?

Because brokered listings start at asking prices that assume premium multiples (4–5x) and negotiate down. The completed transaction is usually 15–25% below asking. When you see '5x ARR SaaS for sale', that's the ask; the close often lands closer to 3.5–4x after diligence-driven adjustments.

Do profit multiples work differently?

Yes. Small SaaS use ARR multiples (2–5x); mid-market SaaS use SDE or EBITDA multiples (3–6x SDE). At $10k+ MRR the two conventions overlap and either works. Below $10k MRR, ARR is the practical currency because small SaaS margin is too variable for SDE to be reliable.

What's the highest multiple you'd pay for small SaaS?

5–6x ARR for verified strong growth (10%+ MoM for 6+ months), premium margin (70%+), and a defensible niche. Above 6x, you're paying for optionality — assumes you'll grow the business meaningfully. That's an operator-founder bet, not a cashflow bet, and needs different underwriting.

When is 2x ARR justified?

Declining MRR, churn above 8% monthly, single-channel traffic dependency, key-person risk, or unusual technical liability (obsolete framework, expiring API dependency). Any one of these caps the multiple at 2–2.5x. Two of them at once pushes into 1.5–2x — 'fixer' territory.

Do multiples vary by SaaS category?

Yes. B2B tools trade at higher multiples (3.5–5x) than B2C (2–3.5x) because retention is generally better. Vertical-SaaS (industry-specific) trades higher than horizontal because switching costs are stickier. Developer tools trade higher than consumer tools. But at small scale, individual factors (margin, growth, age) matter more than category.

How does age affect the multiple?

Under 12 months old caps around 2–2.5x ARR — not enough history to underwrite. 12–24 months earns 2.5–3.5x. Over 24 months earns 3–4.5x depending on the growth story. Over 5 years old and stable is one of the strongest signals — buyers pay premium for durability.

What multiple would a search funder pay?

3–4x ARR for a $200k–$500k SaaS with 50%+ certified margin and clean tax history — the size where SBA financing works. They discount for churn above 5% and pay premium for verified growth. Search funders are often the most price-disciplined buyers because their debt service math is tight.

Do sellers negotiate multiples?

Yes — expect 10–25% below asking price on most closed deals. The exception is desirable listings with multiple bidders, where deals close at or slightly above ask. On Startup Index, older listings (30+ days without an LOI) are typically more flexible than fresh listings.

How do I use the multiple in an offer?

Two steps. First, compute the multiple from asking price and MRR: asking ÷ (MRR × 12). Second, adjust for the variables above and re-price. If a listing shows 4x ARR but the churn is 10% monthly, offer at 2.5x. If it shows 3x ARR but MRR is growing 8% MoM, the ask might already be low — offer close to full.