Revenue Multiple Calculator
A Revenue Multiple expresses company value as a multiple of revenue — for SaaS, valuation divided by ARR — and is the standard shorthand for comparing valuations across private rounds and public comps.
Revenue Multiple = Valuation / ARR | Variable | Meaning |
|---|---|
Valuation | Company valuation (enterprise value for public comparisons). |
ARR | Annual recurring revenue. |
Worked example
- Company Valuation
- $16,000,000
- ARR
- $2,000,000
- → Revenue Multiple (× ARR)
- 8
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Revenue Multiple Formula
Revenue Multiple = Valuation / ARR | Variable | Meaning |
|---|---|
Valuation | Company valuation (enterprise value for public comparisons). |
ARR | Annual recurring revenue. |
How to Calculate Revenue Multiple
Worked example
- Company Valuation
- $16,000,000
- ARR
- $2,000,000
- → Revenue Multiple (× ARR)
- 8
Full definition, benchmarks, and common mistakes live on the Revenue Multiple glossary page ; quick answers are in the Revenue Multiple FAQ .