SaaS ARR Multiple Calculator — Private Valuation 2026
Private SaaS valuation multiples in 2026 sit at 6-12x ARR for healthy growth (40%+) and 3-6x for slower growers. The Rule of 40 — growth plus margin — is the most-watched single number. This tool blends ARR, growth, NRR, and gross margin into a benchmarked range.
How Valuation Multiples Work
Private SaaS multiples blend ARR with growth rate, net retention, and margin profile. A $10M ARR company growing 40% with 115% NRR and 75% gross margin trades 6-9x ARR; a similar company growing 80% trades 10-14x. Bessemer Cloud 100 publishes quarterly medians.
Rule of 40 Premium
Companies that clear Rule of 40 (growth + FCF margin ≥ 40) get a valuation premium. Below 20 typically sees a 30-50% multiple discount. The market in 2026 punishes burn far more than in 2021 — capital-efficient growth is the new bar.
How To Improve Your Multiple
Three levers: (1) Push gross margin to 80%+ through infrastructure consolidation. (2) Hold NRR above 120% through expansion seats and upgrade paths. (3) Maintain growth above 30% while turning FCF positive — the rare combo that clears Rule of 60 and earns 15x+ multiples.
Source: Bessemer Cloud 100 Q1 2026, SaaS Capital Index 2026. Last updated: May 2026.