Agency vs SaaS Valuation Calculator
Learn how SaaS revenue is more valuable for when you want to sell your business. Agencies aren't good assets, they're mostly cash-flowing businesses, whereas SaaS is both.
Interactive Valuation Calculator
Adjust the sliders below to see how your revenue mix affects your agency's valuation
How the Valuation Works
SaaS Valuation
Annual Revenue from your SaaS products is valued at 4-10x multiple.
$2M/yr revenue == sell for $8-20M.
SaaS businesses command higher multiples due to their predictable, recurring revenue streams and scalability.
Agency Valuation
Service-based businesses are valued based on their margins and often are valued at 4-6x EBITDA. So with a 20% net profit margin, that's ~0.8-1.2x multiple revenue.
$2M/yr revenue == sell for $1.6-2.4M.
Traditional service businesses have lower multiples due to their dependency on people (especially founders)and less predictable revenue.
That's not even considering they almost always require the founder to continue working for 2-5 years post-sale.
Calculator Assumptions
SaaS Multiple
7.0x
Applied to Annual Recurring Revenue
Services Multiple
5.0x
Applied to Profit/EBITDA
Services Margin
20%
Net profit margin (equivalent to EBITDA)
These multiples are industry averages and may vary based on company size, growth rate, market conditions, and other factors. This calculator provides estimates for planning purposes.