Enter your ARR and annual growth rate to get an estimated valuation based on the David Cummings formula used by SaaS investors and founders.
SEO-driven growth increases both your ARR and your growth rate, which means it has a compounding effect on your valuation. We've helped generate $80M in client revenue.
Book a Free Strategy CallThe David Cummings model is a practical, founder-friendly way to estimate your SaaS company's valuation. It rewards two things: the size of your recurring revenue base and the speed at which you're growing it.
The formula breaks into two components. The base component (2 × ARR) reflects the floor valuation any SaaS with predictable revenue can expect. The growth component adds a multiplier based on your year-over-year growth rate. The faster you're growing, the higher that multiplier pushes your total valuation.
This is why growth rate is such a powerful lever. A company growing at 100% annually gets significantly more value from the same ARR than one growing at 20%. Investing in channels that accelerate growth, including SEO-driven content and organic acquisition, directly increases how much your company is worth.
Doubling your ARR and doubling your growth rate are not equal levers. Growth rate has an outsized effect on valuation because it's multiplied by 2.5 inside the formula.
Your annual recurring revenue is the base every other number builds on. Higher ARR with the same growth rate still produces a meaningfully larger valuation.
Actual SaaS valuations factor in churn, gross margin, market size, competitive dynamics, and deal structure. Use this as a directional benchmark, not a definitive figure.
SEO is one of the most efficient ways to grow recurring revenue because it compounds over time. Every piece of content, every link, every brand mention builds on the last. If you want to move both the ARR and the growth rate inputs in this calculator, book a call and we'll show you how.
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