ARR Multiple by Growth Rate
Model how your software company's year-over-year (YoY) revenue growth rate directly impacts your SaaS ARR multiple in the 2026 acquisition market.
Low
2.5x ARR
Average
4.5x ARR
High
10.0x+ ARR
Key Value Drivers
- Year-over-Year Growth % (YoY)
- Rule of 40 (Growth % + Profit %)
- Market Segment (B2B Enterprise vs B2C)
- Net Revenue Retention (NRR)
- Burn Multiple & Capital Efficiency
2026 Business Valuation
Free appraisal based on real M&A data
Financials
ARR = MRR × 12. Only include recurring subscription revenue.
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Modeling ARR Multiples by Growth Trajectory
SaaS multiples are not static. The valuation multiple is a function of the company's growth velocity and retention health. Acquirers evaluate how quickly the business is expanding relative to how much cash it burns to achieve that growth.
SaaS Growth Brackets and Multiples
In the 2026 market, software companies are grouped into growth brackets: Declining/Flat (1.5x-3x ARR), Moderate Growth of 10-25% (3x-5x ARR), High Growth of 25-50% (5x-7x ARR), and Hyper Growth of 50%+ (7x-10x+ ARR). Optimizing your retention to achieve customer expansion is the safest way to maintain high growth without burning capital.
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