Startup Valuation Calculator
Free startup valuation calculator using 5 methods: Revenue Multiple, Berkus, Scorecard, VC Method, and Rule of 40. Estimate pre-money and post-money valuation with 2025 industry multiples. No sign-up required.
Under $1M ARR — blends revenue multiples with qualitative scoring
ARR: $300K
How do you compare to similar startups that raised at your stage? 100% = average, above = stronger, below = weaker.
Multiples sourced from SaaS Capital Index (Jan 2025), Carta Q3 2025, Finro, Windsor Drake, Healthcare.digital, Flippa, and Sellside Partners. Berkus Method per Angel Capital Association (2016 update). Scorecard per Bill Payne method.
How to Calculate Your Startup Valuation
1. Select Your Stage
Choose Pre-Revenue, Early (under $1M ARR), or Growth ($1M+ ARR). Each stage uses different valuation methods — pre-revenue relies on qualitative scoring (Berkus, Scorecard), while revenue-generating startups use data-driven revenue multiples and the Rule of 40.
2. Enter Your Metrics
Input your revenue (MRR or ARR), year-over-year growth rate, gross margin, and sector. For Growth-stage startups, add Net Revenue Retention (NRR) for a more accurate multiple. For pre-revenue, score your progress across 5 risk factors using interactive sliders.
3. Compare Valuation Methods
The calculator runs up to 5 valuation methods simultaneously: Revenue Multiple (sector-specific 2025 benchmarks), Berkus Method ($500K per risk factor), Scorecard Method (weighted peer comparison), VC Method (exit-based), and Rule of 40 adjustment. See how each method values your startup differently.
4. Model Scenarios
Use the sliders to model different scenarios. What if growth increases to 100%? What if margins improve to 80%? The results update in real-time so you can see exactly how each metric impacts your valuation — and what to focus on before your next fundraise.
5. Review Your Weighted Estimate
Get a final weighted valuation range (low, mid, high) that blends all applicable methods. Switch to Investor View to see ownership percentages and projected returns. Use these numbers as a data-backed starting point for fundraising conversations.
6. Get Fundraising Recommendations
Enter your monthly burn rate to see how much you should raise. The calculator recommends a funding round type (Pre-Seed, Seed, or Series A) based on your revenue, suggests a raise amount for 18 months of runway, and warns if implied dilution exceeds 25%.
Key Valuation Terms
- Pre-Money Valuation
- The estimated value of your company before receiving new investment. This is the number you negotiate with investors. A $4M pre-money valuation with a $1M investment means the investor gets 20% ownership ($1M / $5M post-money).
- Post-Money Valuation
- Your company's value immediately after receiving investment. Calculated as pre-money valuation plus the investment amount. Post-money determines each investor's ownership percentage: their investment divided by post-money valuation.
- Revenue Multiple
- A factor applied to your ARR to estimate company value. Multiples vary by sector, growth rate, and market conditions. In 2025, median private SaaS multiples are 6.1x ARR (SaaS Capital Index). AI/ML companies command 25-30x due to high growth expectations.
- Rule of 40
- A SaaS health benchmark: Revenue Growth Rate (%) + EBITDA Margin (%) should exceed 40. Each 10-point improvement above 40 adds approximately 1.1x to revenue multiples. Companies exceeding the Rule of 40 command ~10.7x revenue vs ~6x for those below.
- Net Revenue Retention (NRR)
- The percentage of recurring revenue retained from existing customers over time, including expansions and contractions. NRR above 120% can boost valuation multiples by 60%+. It signals that your product becomes more valuable to customers over time.
- Berkus Method
- A pre-revenue valuation framework that scores 5 risk factors (idea, prototype, team, relationships, product/sales) at up to $500K each, for a maximum $2.5M pre-money. Created by angel investor Dave Berkus, updated in 2016 to scale with market conditions.
Tips for Maximizing Your Startup Valuation
- 1.Revenue multiples are the most reliable method for post-revenue startups. Pre-revenue valuations are inherently subjective — use multiple methods and take the weighted average.
- 2.NRR above 120% can boost your multiple by 60%+ (from ~6x to ~10x ARR). Invest in expansion revenue and reducing churn before fundraising.
- 3.Rule of 40 is increasingly used as a composite health metric. Companies scoring above 40 command ~10.7x revenue vs ~6x median. If growth is slowing, compensate with profitability.
- 4.Growth rate is the single strongest predictor of valuation. However, the relationship is logarithmic — going from 20% to 50% growth matters more than 100% to 130%.
- 5.Valuation is a negotiation, not a formula. These benchmarks provide a data-backed starting point, but final terms depend on market conditions, competitive dynamics, and investor demand.
Frequently Asked Questions
Investors use multiple methods depending on stage. For pre-revenue startups, qualitative methods like Berkus (scoring 5 risk factors) and Scorecard (weighted comparison to peers) are common. For revenue-generating startups, revenue multiples are primary — applying a sector-specific multiple (e.g., 6x ARR for SaaS) adjusted for growth, margins, and retention. The VC Method works backwards from expected exit value and required returns.
In 2025, median private SaaS multiples are 6.1x ARR (SaaS Capital Index). However, this varies significantly: bootstrapped companies average 4.8x, equity-backed 5.3x. High-growth SaaS (100%+ YoY) can reach 10-15x. AI/ML companies command 25-30x. The multiple is heavily influenced by growth rate, gross margins, and net revenue retention.
Growth is the single strongest predictor of valuation multiples. The relationship is roughly logarithmic: moving from 20% to 50% growth adds more to your multiple than moving from 100% to 130%. Companies growing 100%+ typically receive 10-15x ARR, while those growing below 20% see 3-5x. The Rule of 40 (growth + profit margin > 40) is increasingly used as a composite benchmark.
The Berkus Method, created by angel investor Dave Berkus, values pre-revenue startups by scoring 5 risk factors: Sound Idea ($0-500K), Prototype/Technology ($0-500K), Quality Management Team ($0-500K), Strategic Relationships ($0-500K), and Product Rollout/Sales ($0-500K). Maximum pre-money valuation is $2.5M. The amounts can be scaled proportionally to your market's typical pre-seed valuations.
Pre-money valuation is what your company is worth before receiving investment. Post-money valuation is pre-money plus the investment amount. For example, if your pre-money is $4M and an investor puts in $1M, your post-money is $5M and the investor owns 20% ($1M / $5M). This distinction is critical for understanding dilution.
This calculator uses 2025 benchmark data from SaaS Capital, Carta, and industry reports. It provides directional estimates, not precise appraisals. Actual valuations depend on negotiation, market conditions, competitive dynamics, and factors no calculator can capture. Use the results as a starting point for fundraising conversations, not as a definitive number.
A common rule of thumb is to raise 18 months of runway — enough to hit your next milestone with a buffer. At the Pre-Seed stage, typical rounds are $250K–$1M. Seed rounds range from $1M–$4M, and Series A from $5M–$15M. The right amount depends on your burn rate, growth targets, and how much dilution you can accept (aim for 15–25% per round).
No. All calculations happen entirely in your browser. No data is sent to any server, stored, or shared. Your financial information stays completely private.
