SaaS Valuation SDE Multiple Calculator

Calculate the valuation of your sub-$2M ARR SaaS business using private market comparables and Seller's Discretionary Earnings (SDE) methodology.

Calculator Inputs

$

Total annual recurring revenue (ARR)

$

Total owner compensation to add back

$

Non-recurring expenses to add back

$

Earnings before interest, taxes, depreciation, and amortization

Monthly customer churn percentage (typical range: 1-5%)

Percentage of revenue from top 10 customers

Year-over-year revenue growth

How dependent is the business on the owner?

SDE Calculation

EBITDA -
+ Owner Salary & Benefits -
+ One-Time Expenses -
SDE -
-

Valuation

Multiple Factors

Base Multiple -
Churn Adjustment -
Concentration Adjustment -
Growth Adjustment -
Owner Dependency Adjustment -
Final Multiple -

Valuation methodology based on private market comparables using SDE (Seller's Discretionary Earnings) for sub-$2M ARR SaaS businesses.