Valuation & Pricing6 min readMar 10, 2026
How to Value Your SaaS Before Selling: Formula & Multiples Guide
Setting the right asking price is the single most important factor in a successful exit. Price too high, and buyers will ignore your listing; price too low, and you leave money on the table.
The Micro-SaaS Valuation Formula
Asking Price = Annual Recurring Revenue (ARR) × Quality Multiple
Where the Quality Multiple ranges from 1.5x (higher churn, competitive niche) to 3.5x+ (growing organically, low churn, high gross margin).
FREQUENTLY ASKED QUESTIONS
Does pre-revenue status hurt my valuation?
Pre-revenue tools cannot command revenue multiples, but they can sell for $1,000–$5,000 based on the quality of code and initial registered user base.
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