Micro-SaaS Exit Value & Multiples Simulator
Estimate your micro-SaaS company's acquisition value based on growth, churn, and IP assets.
What is the Micro-SaaS Exit Value & Multiples Simulator?
The Micro-SaaS Exit Value & Multiples Simulator is a business valuation engine built for indie hackers, micro-SaaS founders, and buyers (like Acquire.com or quiet light). Valuation multiples for software assets under $1M ARR are determined by organic growth curves, churn rates, owner involvement levels, and IP assets. This tool calculates your estimated enterprise multiples and acquisition valuations.
How Does the Micro-SaaS Exit Value & Multiples Simulator Work?
1. Enter Annual Revenue (ARR) â Total revenue over the past 12 months.
2. Provide Growth rate (%) â Year-over-year revenue expansion speed.
3. Input Churn Rate (%) â Monthly customer churn percentage.
4. Detail Assets & Operations â Specify if you own custom IP and rate your founder workload involvement.
5. Analyze Exit Multiples â Review your target ARR multiple and estimated acquisition values.
Formula & Calculation Method
Micro-SaaS Valuation Logic:
- Baseline ARR Multiple: 4.0x
- Growth Adjusters: YoY Growth >50% (+1.5x), YoY Growth 20-50% (+0.5x), YoY Growth <10% (-1.0x).
- Churn Adjusters: Monthly Churn <1.5% (+0.75x), Churn >4.0% (-1.25x).
- IP Assets: Custom proprietary IP (+0.5x), Generic wrappers/templates (-0.75x).
- Workload Independence: Low owner dependence (+0.5x), High founder maintenance workload (-1.0x).
- Final Valuation: ARR Ã Calculated Multiple (clamped between 1.5x and 8.0x).
Example Calculation
Example: Micro-SaaS with $120,000 ARR, 25% annual growth, 2.5% churn, custom IP, and standard founder involvement (Medium).
- Valuation Multiple:
- Base = 4.0x
- 25% Growth = +0.5x
- 2.5% Churn = +0.0x (average)
- Custom IP = +0.5x
- Medium Dependency = +0.0x (baseline)
- Final Multiple: 4.0 + 0.5 + 0.5 = 5.0x ARR
- Exit Valuation: $120,000 ARR Ã 5.0 = $600,000 (MRR = $10,000).
Frequently Asked Questions
**Micro-SaaS Valuation Logic:** - **Baseline ARR Multiple:** 4.0x - **Growth Adjusters:** YoY Growth >50% (+1.5x), YoY Growth 20-50% (+0.5x), YoY Growth <10% (-1.0x). - **Churn Adjusters:** Monthly Churn <1.5% (+0.75x), Churn >4.0% (-1.25x). - **IP Assets:** Custom proprietary IP (+0.5x), Generic wrappers/templates (-0.75x). - **Workload Independence:** Low owner dependence (+0.5x), High founder maintenance workload (-1.0x). - **Final Valuation:** ARR Ã Calculated Multiple (clamped between 1.5x and 8.0x).
Disclaimer: This tool is provided for informational and calculation purposes. Output values are estimates based on standard user inputs.