Startup Valuation Calculator
Estimate indicative company value using revenue and ARR multiples, EBITDA-based enterprise value, a simple discounted cash flow with a terminal value, or pre-money and post-money math for equity rounds. Built for founders planning fundraising in India and comparing scenarios before term sheets—not a substitute for professional advice.
Normalized subscription or repeatable monthly revenue. ARR is twelve times MRR in this model.
Multiples are illustrative benchmarks only; real deals vary with growth, retention, and capital efficiency.
Applied as a simple uplift: valuation scale factor 1 + growth/100 on the multiple-based value.
If you enter an amount, we pair it with the growth-adjusted mid valuation as a stand-in pre-money to show approximate post-money and investor ownership. Replace with your actual pre-money when negotiating.
Growth-adjusted valuation (mid multiple)
₹6,96,00,000
Annual recurring revenue (ARR)
₹60,00,000
Base valuation (8× ARR mid)
₹4,80,00,000
Growth-adjusted range (low–high)
₹4,35,00,000 – ₹10,44,00,000
Growth-adjusted valuation band
Why startup valuation matters
Valuation is the bridge between your traction story and the economics of a funding round. Founders use revenue and ARR multiples to align with how venture-backed software and fintech companies are often discussed in market; EBITDA multiples matter more when the business has durable earnings; discounted cash flow models stress-test how much of today's value sits in near-term cash flows versus long-run terminal assumptions. Pre-money and post-money arithmetic keeps cap table conversations honest before lawyers refine terms.
Revenue and ARR multiples
For recurring-revenue businesses, investors frequently reference annual recurring revenue and monthly recurring revenue when comparing deals. This calculator converts MRR to ARR, applies an industry-specific band of ARR multiples, then optionally scales the result with a simple growth factor so you can see how headline growth changes an indicative range—not a prediction of your next term sheet.
EBITDA and enterprise value
When operations generate sustainable earnings, EV/EBITDA multiples map EBITDA to enterprise value. Equity value still requires adjusting for cash, debt, and preferences—this tool stays at the enterprise layer on purpose.
Simple DCF in plain terms
The DCF tab forecasts five years of free cash flow with a steady growth rate, discounts each year at your chosen rate, then values everything after year five with a Gordon growth terminal formula. The discount rate must exceed terminal growth, or the math breaks—mirroring standard textbook constraints for perpetuity models.
Pre-money and post-money (round math)
Investor ownership is often approximated as investment divided by post-money valuation on a fully diluted basis. SAFEs, convertible notes, option pools, and multiple classes change the precise outcome—use this as a classroom-clear baseline before legal complexity.
Keywords and topics we cover
Startup valuation calculator, pre-money valuation, post-money valuation, founder dilution, ARR multiple, MRR to ARR, SaaS valuation, EBITDA multiple, enterprise value, discounted cash flow, terminal value, seed round and Series A planning, Indian startup fundraising context, and growth-adjusted revenue bands—framed for education and scenario planning on ZeroKhata.
Frequently asked questions
How do you value a startup quickly?
Common approaches include comparable company multiples on revenue or ARR, EV/EBITDA when earnings are meaningful, and discounted cash flows from projected free cash flows. Each stresses different risks; many teams show more than one view.
What is pre-money vs post-money valuation?
Pre-money is the company value immediately before the new money hits the cap table. Post-money equals pre-money plus the investment amount. Dilution and ownership percentages are usually computed against post-money on a fully diluted basis.
What is ARR in startup valuation?
Annual recurring revenue annualizes subscription or repeatable revenue. With monthly figures, ARR is commonly twelve times MRR. Multiples of ARR are a shorthand for comparing recurring-revenue businesses, not a rule that applies to every company stage.
Why must discount rate exceed terminal growth in the DCF tab?
The perpetual growth terminal value formula divides by discount rate minus terminal growth. If growth meets or exceeds the discount rate, the denominator is zero or negative and the present value is not economically meaningful in this simple setup.
Does this replace an investment banker or lawyer?
No. Real financings involve legal terms, liquidation preferences, option pools, and market timing. Use this calculator to build intuition and ranges, not as tax, legal, or investment advice.
Is the calculator free?
Yes. ZeroKhata provides this startup valuation calculator free in the browser with no registration required.