Startup Valuation Calculator

Estimate your startup valuation using three methods: revenue multiple, discounted cash flow (DCF), and the Berkus Method for pre-revenue companies. Free with charts and tables for each method.

What is Startup Valuation Calculator?

The Startup Valuation Calculator lets you estimate your company's value using three distinct, widely-recognized methods in one place: revenue multiple valuation for companies with recurring revenue, discounted cash flow (DCF) analysis for companies with predictable cash flows, and the Berkus Method for pre-revenue startups. Switch between methods to compare estimates and understand which assumptions drive each number.

Formula

Revenue Multiple: Valuation = ARR × Industry Multiple. DCF: Valuation = Σ (Cash Flow in Year n ÷ (1 + Discount Rate)^n) + Terminal Value ÷ (1 + Discount Rate)^Years, where Terminal Value = (Final Year Cash Flow × (1 + Terminal Growth Rate)) ÷ (Discount Rate − Terminal Growth Rate). Berkus Method: Valuation = Sum of (Factor Score % × $500,000) across five qualitative factors.

How to Calculate

Choose the valuation method that fits your company's stage: Revenue Multiple, DCF, or Berkus Method.
For Revenue Multiple: enter your ARR and an appropriate industry multiple.
For DCF: enter your current cash flow, expected growth rate, discount rate, projection years, and terminal growth rate.
For Berkus Method: score each of the five qualitative factors from 0-100% based on your company's current state.
Review your estimated valuation, plus supporting charts and tables specific to the method chosen.

Example

A SaaS company with $500,000 ARR and an industry multiple of 5x would be valued at $2.5 million using the Revenue Multiple method. The same company, if pre-revenue with a strong prototype (70%), solid team (80%), but weaker strategic relationships (30%) and no product rollout yet (10%), would be valued at roughly $1.2 million using the Berkus Method — illustrating how differently each method values a company depending on its stage.

Key Benefits

Compare three distinct valuation methods in one tool instead of using separate spreadsheets
See exactly which assumptions (multiple, discount rate, factor scores) drive your valuation
Get an appropriate valuation method whether you're pre-revenue or have significant recurring revenue
Export your valuation analysis as PDF, Excel, or CSV for pitch decks or investor conversations

Common Mistakes to Avoid

Using a revenue multiple valuation for a pre-revenue company, or DCF for a company with unpredictable cash flows
Choosing an unrealistically low discount rate in DCF models, which inflates valuation and misrepresents actual risk
Treating any single valuation method's output as a precise number rather than one input among several to a negotiated valuation

Pro Tips

Calculate valuation using more than one method when possible, and use the range between them to anchor negotiations
For DCF, run the calculation with a range of discount rates (e.g., 15%, 20%, 25%) to see how sensitive your valuation is to that assumption
For the Berkus Method, be conservative and honest in scoring each factor — overinflating scores just moves the negotiation starting point, not the real value

Key Terms Explained

ARR (Annual Recurring Revenue): The predictable, recurring portion of revenue a subscription business generates per year
Discount Rate: The rate used to convert future cash flows into their present value, reflecting the riskiness of those future cash flows
Terminal Value: An estimate of a company's value beyond the explicit projection period in a DCF model
Berkus Method: A pre-revenue valuation framework assigning up to $500,000 to each of five qualitative business factors

Common Use Cases

Preparing a valuation estimate before a fundraising round or investor pitch
Comparing how different valuation methods value the same company differently
Understanding what assumptions (multiple, discount rate, growth rate) most affect your valuation
Setting realistic expectations for pre-revenue startups using qualitative factors instead of financials

Frequently Asked Questions

Which valuation method should I use for my startup?

Use the Revenue Multiple method if you have meaningful annual recurring revenue (ARR) and want a quick industry-standard estimate. Use the DCF method if you have predictable cash flows and want a more detailed, assumption-driven valuation. Use the Berkus Method if you're pre-revenue — it values qualitative factors like your idea, prototype, and team instead of financial metrics that don't yet exist.

What revenue multiple is typical for SaaS startups?

SaaS revenue multiples typically range from 3x to 10x ARR depending on growth rate, gross margin, market size, and current market conditions. High-growth companies (100%+ YoY) with strong margins can command multiples above 10x, while slower-growing or lower-margin businesses often see multiples closer to 2-4x.

Why does the DCF method need a terminal value?

A DCF only explicitly projects cash flows for a limited number of years (typically 5), but the business is assumed to keep operating beyond that. The terminal value estimates the present value of all cash flows beyond the projection period using the Gordon Growth Model, and it often makes up the majority of a DCF valuation — which is exactly why the terminal growth rate assumption matters so much.

What is the Berkus Method and when should I use it?

The Berkus Method, developed by angel investor Dave Berkus, is a valuation approach for pre-revenue startups. It assigns up to $500,000 of value to each of five qualitative factors (sound idea, prototype, quality team, strategic relationships, and product rollout), for a maximum valuation of $2.5 million. It's widely used by angel investors specifically because early-stage companies don't yet have the financial data needed for revenue multiple or DCF valuations.