How do we calculate the value of a SaaS?
To accurately determine how much a SaaS is worth, investors and buyers look at multiple indicators, the most critical being ARR (Annual Recurring Revenue), CMGR (Compound Monthly Growth Rate), Net Profit Margin, and the Churn Rate. Not all software companies are worth the same under an investor's microscope: a SaaS with high retention, low operational costs, and predictable, consistent growth will always receive a significantly higher valuation multiple than its competitors. Our calculator uses standardized market formulas and current real multiples to give you a highly precise estimate. And to turn that estimate into a real offer, Factosaas allows you to certify all your metrics, connecting straight to platforms like Stripe or Paddle to present any buyer with an unbreakable financial track record.
For how much can I sell my SaaS?
The final price you'll negotiate to sell a SaaS varies dramatically depending on the scale of your business, your target market, and your historical metrics. Market values (multiples) today conservatively range between 2x and 7x your ARR or annual profit, heavily depending on the size of the operation: * MicroSaaS: These businesses are often valued using a multiple on net profits or SDE (Seller's Discretionary Earnings), standing as the ideal target for individual buyers and serial entrepreneurs. Investors in this bracket value high efficiency and low operational overlap. * Medium/Enterprise SaaS: These are valued directly on their ARR due to their massive long-term scalability potential, and are usually acquired by corporate investment funds or Private Equity firms. Regardless of your SaaS scale, linking your billing accounts to Factosaas will generate an immutable report that instantly validates your operation size and justifies the highest possible multiple during negotiations.
What do SaaS buyers and investors look for?
When evaluating and ultimately acquiring a SaaS, a sophisticated investor primarily looks for predictability and frictionless scalability. The factors that truly move the needle to close a successful sale in your favor include: * Retention (Low Churn): A SaaS that retains customers indefinitely is the golden metric. It proves your product solves a critical problem. * Consistent monthly growth: Proving you have true Product-Market Fit is essential for driving the multiple higher. * Truly healthy margins: An efficient and highly profitable business always attracts better offers and more competitors to the bidding process. * Transparent and verifiable data: Nobody buys a car without checking the engine. With Factosaas, you instantly eliminate investor mistrust by providing a public dashboard with read-only access to your verified revenue performance, shortening Due Diligence to days rather than months.