SaaS Revenue Multiples by Growth Rate and NRR (2026)
How SaaS valuation multiples scale with growth tier and net revenue retention. The tiers show relative scaling; anchor absolute levels to the verified current medians below.
Current market anchor (verified 2 July 2026)
The SaaS Capital Index median is 3.2x ARR (30 June 2026), a decade-plus low after the Q1 2026 AI re-rating; top quartile 6.4x, bottom quartile 2.5x. Only 6 of 58 constituents reporting growth grew faster than 30% over the trailing year, so the high-growth tiers below describe a cohort that has nearly vanished from public markets and now exists mainly in private AI-native deals. See the verified public multiples data.
ARR Multiple by Growth Rate
Private company multiples typically trade at a 20-35% discount to public comparables due to illiquidity. Ranges reflect companies with average NRR (100-115%) and gross margin (70-80%), and describe how buyers scale multiples with growth rather than today's absolute index levels.
| Growth Tier | Private Low | Private Mid | Private High | Public Median |
|---|---|---|---|---|
| 100%+ YoY | 12x | 17x | 22x | 20x |
| 80-100% YoY | 9x | 13x | 17x | 16x |
| 60-80% YoY | 7x | 10x | 13x | 12x |
| 40-60% YoY | 5x | 7.5x | 10x | 9x |
| 20-40% YoY | 3x | 4.5x | 6.5x | 6x |
| Under 20% YoY | 1.5x | 2.5x | 4x | 3.5x |
100%+ YoY
Hypergrowth tier. Typically Series B+ companies. Multiple reflects the implied future ARR at moderated growth.
80-100% YoY
Strong growth. Most top-quartile Series A/B companies fall here. Efficient growth commands a premium.
60-80% YoY
Good growth. Still venture-backable. NRR and margin quality differentiate within this tier.
40-60% YoY
Solid growth for established companies. Rule of 40 and profitability trajectory matter more here.
20-40% YoY
Below the typical VC hypergrowth threshold. Strategic buyers and growth equity investors are relevant acquirers.
Under 20% YoY
Mature growth. PE and strategic buyers dominate. Profitability and cash generation are primary value drivers.
NRR Premium / Discount to Base Multiple
Net revenue retention is one of the strongest individual drivers of the premium or discount applied to the growth tier base multiple. These adjustments are applied on top of the growth tier range.
| NRR Level | Multiple Adjustment |
|---|---|
| 130%+ | +30-50% |
| 115-130% | +15-30% |
| 100-115% | +0-15% |
| 90-100% | -5 to 0% |
| Below 90% | -15 to -30% |
How to Read These Multiples
These ranges represent what an informed buyer or investor would pay relative to ARR, assuming a clean cap table, no customer concentration issues, and at least 12 months of data demonstrating the growth rate.
The wide range within each tier reflects quality differences: NRR, gross margin, burn efficiency, team quality, market size, and competitive moat all adjust the multiple up or down within the tier. The calculator on the home page applies these adjustments automatically.
Strategic acquirers sometimes pay above these ranges if your product fills a gap in their portfolio or accelerates their roadmap. Financial buyers (PE and growth equity) are typically more disciplined around these benchmarks.