Micro-SaaS Valuation & Exit Multiplier Estimator
Calculate the market acquisition valuation of your Micro-SaaS based on ARR, Net Revenue Retention, churn rate, and growth metrics.
Micro-SaaS Valuation & Exit Multiplier Estimator
Calculate acquisition valuation ranges based on SDE/ARR, NRR %, churn rate, and Acquire.com multiples.
📊 Financial & Revenue Inputs
⚙️ Growth, Retention & Workload Levers
📈 Valuation Financial Metrics
What is the Micro-SaaS Valuation & Exit Multiplier Estimator?
The Micro-SaaS Valuation & Exit Multiplier Estimator helps indie hackers, solo founders, and SaaS entrepreneurs estimate the acquisition value of their software business on platforms like Acquire.com, Flippa, and Quiet Light.
Micro-SaaS businesses (under $500k ARR) are typically valued using a Seller's Discretionary Earnings (SDE) Multiple (2.5x to 4.5x SDE) or an Annual Recurring Revenue (ARR) Multiple (3.0x to 6.0x ARR).
The valuation multiple is heavily adjusted based on 5 core financial levers:
1. Net Revenue Retention (NRR %): Higher retention means expanding customer value (+0.5x to +1.0x multiple premium).
2. Monthly Churn Rate (%): Low churn (<2%) yields premium valuation multiples.
3. Year-over-Year Growth Rate (%): Fast-growing SaaS (>50% YoY) commands higher multiples.
4. Founder Weekly Hours: Low founder dependency (<5 hrs/week) increases takeover attractiveness.
5. Customer Concentration Risk: Over-dependence on a single customer (>25% ARR) reduces valuation multiples.
This calculator computes your Base SDE/ARR Valuation, applies positive & negative risk multipliers, and outputs an estimated Low, Expected, and High Exit Price Range.
How Does the Micro-SaaS Valuation & Exit Multiplier Estimator Work?
1. Enter Monthly / Annual Revenue & Expenses — Input your Monthly Recurring Revenue (MRR), annual growth rate %, and annual operating expenses.
2. Set Founder Salary & Discretionary Personal Add-Backs — Input founder pay to calculate Seller's Discretionary Earnings (SDE).
3. Select Metrics & Retention — Input Monthly Churn %, Net Revenue Retention (NRR %), and weekly founder hours.
4. View Acquisition Valuation Range — Instantly review your estimated valuation range (Low, Mid, High), multiple breakdown, and actionable exit tips.
Formula & Calculation Method
1. Annual Recurring Revenue (ARR) & SDE:
$$\text{ARR} = \text{MRR} \times 12$$
$$\text{SDE} = (\text{ARR} - \text{Operating Expenses}) + \text{Founder Salary} + \text{Personal Add-Backs}$$
2. Base Valuation Multiplier Determination:
$$\text{Base Multiple} = 3.5x \text{ (SDE)} \quad \text{or} \quad 4.0x \text{ (ARR)}$$
3. Multiple Adjustments:
$$\text{Adjusted Multiple} = \text{Base Multiple} + \Delta \text{NRR} + \Delta \text{Growth} - \Delta \text{Churn} - \Delta \text{Hours}$$
4. Estimated Valuation Range:
$$\text{Expected Valuation} = \text{SDE (or ARR)} \times \text{Adjusted Multiple}$$
$$\text{Low Valuation} = \text{Expected} \times 0.80, \quad \text{High Valuation} = \text{Expected} \times 1.25$$
Example Calculation
Example: Micro-SaaS with $10,000 MRR ($120,000 ARR)
- Operating Expenses: $20,000/yr | Founder Salary: $40,000/yr → SDE = $140,000/yr
- NRR: 110% (+0.5x) | Churn: 1.5% (+0.5x) | YoY Growth: 60% (+0.5x) | Founder Hours: 4 hrs/wk (+0.5x)
- Base Multiple: 3.5x → Adjusted Multiple: 5.5x SDE
Acquisition Valuation Range:
- Low Target: $140,000 × 4.4 = $616,000
- Expected Valuation: $140,000 × 5.5 = $770,000
- High Target: $140,000 × 6.8 = $952,000