Methodology
This calculator uses the revenue multiple method for companies with revenue and a stage-based comparable method for pre-revenue startups.
Revenue multiple method. Each industry carries a base forward revenue multiple (e.g. 12x for SaaS, 15x for AI/ML). That multiple is adjusted upward based on year-over-year growth, capped at 3x the base. A stage factor then scales the result: earlier stages see lower multiples because the business has less operating proof.
Pre-revenue method. When there is no revenue to anchor a multiple, the calculator uses typical valuation ranges observed at each funding stage, adjusted by an industry multiplier. Hot sectors like AI/ML carry a premium; capital-intensive sectors like hardware do not.
Runway. Cash on hand divided by monthly burn rate. Runway below 6 months is flagged as critical because it limits negotiating leverage and increases dilution risk.
To model how a raise at this valuation affects your cap table, use the equity dilution calculator.
This calculator is for illustrative purposes only. Actual valuations depend on traction metrics, team, competitive dynamics, market conditions, and investor appetite that cannot be captured in a simple model.
