Calculate revenue multiples
A revenue multiple is asking price ÷ ARR — how many times annual recurring revenue the listing costs. Change asking or multiple to re-solve.
Revenue multiple
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- MRR multiple
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- Implied asking
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Educational only — not investment advice.
What is a revenue multiple?
A revenue multiple (often an ARR multiple) is how many times annual recurring revenue the asking price represents. Formula: asking price ÷ ARR. Example: a $150,000 asking price on $50,000 ARR is a 3× ARR multiple.
An MRR multiple is the same idea on a monthly base (asking ÷ MRR). Higher multiples usually mean the market is paying more for each dollar of recurring revenue — often for growth, margins, or defensibility — but a multiple alone is not a buy signal.
How to use this calculator
Enter ARR and asking to see the multiple, or set a target multiple to solve implied asking. Pair with acquisition payback for months to break even.
Educational underwriting aid only — not investment advice.