CEO/Founder Context: Valuation isn’t just a revenue multiple. It’s about the quality of that revenue. Use this tool to see how increasing NRR (retention) by 10% can add millions to your exit value.
1. Company Metrics
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Current revenue run-rate.
50%
100%
The “Product” Lever:Below 100% kills valuation. Above 120% is a multiplier.
It estimates an implied revenue multiple based on your growth rate and Net Revenue Retention, then multiplies that by ARR to simulate an estimated valuation. It also charts how valuation changes as NRR moves from low retention to strong expansion.
What is NRR, and why does it affect valuation so much?
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Net Revenue Retention measures how much recurring revenue you keep and expand from existing customers, after churn and downgrades. High NRR signals strong product value, expansion potential, and efficient growth, which is why it can lift the multiple dramatically.
Is this valuation model accurate for every SaaS business?
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It is a simulator, not an investment banker model. Real outcomes depend on market category, gross margin, CAC payback, deal mix, customer concentration, and timing. The purpose here is to visualize how revenue quality metrics like NRR change the multiple.
How should I interpret the implied revenue multiple shown?
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Treat it as a directional signal for how investors might price your ARR given your current growth and retention. If NRR is below 100%, the multiple typically compresses because growth has to come from new sales just to stand still. If NRR is above 120%, multiples often expand because revenue compounds inside the base.
Does this tool save or send my financial inputs?
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It saves your last inputs locally in your browser so you can come back and continue. It does not require an account and it does not send your ARR, growth, or NRR to a server by default.
What is the best way to use this tool as a CEO?
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Use it to quantify the strategic value of retention and expansion work. If you are choosing between shipping new features for top-of-funnel growth versus fixing churn drivers, this makes the tradeoff visible, improving NRR often creates a bigger valuation lift than chasing raw growth alone.
Tip: Export the chart and use it in board updates to show how product retention improvements translate into real exit value.