Free startup finance tool

Business Valuation Calculator

Free startup valuation, pre-money, and post-money calculator.

A business valuation calculator estimates what a company may be worth by applying market multiples to revenue, profit, growth, industry, and stage assumptions. Use it to frame a planning range before fundraising, selling, or validating an opportunity.

Estimated pre-money

$5.2M

Base planning estimate.

Valuation range

$3.9M-$7.1M

Low to high scenario.

Investor ownership

4.6%

For $250.0K invested.

Inputs

Estimate your value

Result

Valuation estimate

Solid profile

Based on $1.2M in annual revenue, 35% growth, and a 5.8x revenue multiple, this estimate puts the business around $5.2M pre-money.

Low$3,922,155
Base$5,229,540
High$7,059,879
Revenue method

$6,961,500

5.8x adjusted revenue multiple.

Profit method

$2,631,600

18.3x profit multiple on $144,000 profit.

Breakdown

What drives this estimate

Business model

SaaS / subscription

Baseline revenue multiple: 6.0x

Growth adjustment

35% annual growth

Growth factor: 1.13x

Margin adjustment

12% profit margin

Margin factor: 1.01x

Stage risk

Seed / repeatable sales

Stage factor: 0.85x

Financing math

Pre-money valuation$5,229,540
New investment$250,000
Post-money valuation$5,479,540
Investor ownership4.6%

Method

How to use the valuation calculator

1

Enter annual revenue and profit margin

Use trailing 12-month revenue when available. Add EBITDA or operating profit margin so the calculator can compare revenue-based and earnings-based valuation methods.

2

Choose an industry and stage

Different business models trade at different multiples. The calculator adjusts the baseline multiple for growth, margin, and stage risk.

3

Review the valuation range

Use the low, base, and high estimates as planning scenarios rather than a formal appraisal. Compare the result against investor expectations and market comps.

Next step

Validate the idea behind the valuation.

A calculator can estimate the math. Idea Score helps you stress test the market, competitor landscape, risks, audience, SEO potential, and execution plan behind the business.

Run an idea score

FAQ

Business valuation questions

What is a business valuation calculator?

A business valuation calculator estimates what a company may be worth by applying market multiples to revenue, profit, growth, and risk assumptions. It is useful for planning, but it is not a formal appraisal.

How do you value a startup with revenue?

A revenue-stage startup is often valued by applying an industry revenue multiple to trailing or forward revenue, then adjusting for growth, gross margin, retention, market size, and execution risk.

What is pre-money valuation?

Pre-money valuation is the estimated value of a company before a new investment. Post-money valuation equals pre-money valuation plus the new investment amount.

What is a good revenue multiple for a startup?

There is no single good multiple. SaaS companies may command higher multiples than services or e-commerce businesses, but the right multiple depends on growth, margin, retention, market conditions, and risk.

Should I use revenue or profit to value a small business?

Profitable small businesses are usually valued from earnings or seller discretionary earnings. High-growth startups may use revenue multiples when profit is intentionally low because the company is investing in growth.