What to prepare before using the calculator
Use one consistent reporting period for monthly recurring revenue (MRR) and monthly operating profit. Gather annual revenue growth, monthly churn, paying customer count, the largest customer’s share of revenue, your weekly operating hours and the business age in months. You also select the business model and primary acquisition channel. The form collects business context, but not every input changes the multiple.
Reconcile recurring revenue with your billing records and operating profit with your accounts. Do not silently substitute revenue, cash in the bank or an annual contract payment for monthly profit. If a month is unusually strong or weak, record that assumption when interpreting the result. The model annualizes the monthly profit you enter; it does not independently normalize seasonality or verify accounts.
A complete calculation example
This fictional SaaS has $10,000 MRR, $5,000 monthly operating profit, 22% annual growth, 2.5% monthly churn, 200 paying customers, a largest customer at 10% of revenue, 15 founder hours per week, 30 months of history, a B2B model and Organic acquisition.
2.60 + 0.25 + 0.10 + 0.15 + 0 + 0 + 0.10 = 3.20×
$60,000 × 2.90–3.50 = $174,000–$210,000
The additions represent growth, churn, concentration, founder hours, operating history and acquisition channel, in that order. The displayed range uses the central multiple ±0.30. These are AW-V0.3-2026 rules, not observed transaction benchmarks. The same inputs produce the same estimate.
Read the three outputs separately
The valuation range multiplies annual operating profit by the adjusted multiple. The AppsWorth Score is a separate 0–100 score across six categories. This example scores 82: financial quality 25, growth 15, retention 15, customer diversification 10, founder independence 10 and maturity 7. A score of 82 is not an 82% probability of selling.
Value Leaks identify selected operating weaknesses. This example triggers none, but that does not establish that a business is ready for every buyer. Contracts, code quality, legal ownership and the accuracy of records still require a separate review. Use the exit-readiness guide to turn a result into an evidence checklist.
Questions before you calculate
Does this use ARR multiples?
No. AW-V0.3-2026 is anchored to annual operating profit. Read the multiples guide before comparing its output with a revenue-based estimate.
What happens with zero or negative profit?
Zero entered profit produces a zero profit-based valuation. Negative monthly profit is not accepted by the current form. Neither condition proves that the product or intellectual property has no value; it means this model is limited for that business.
Is this a sale price or formal appraisal?
No. The range is an informational model output based on your inputs. It does not forecast buyer demand, negotiate terms or deduct transaction costs. Start with the estimate, inspect its assumptions and decide what evidence to improve.
AppsWorth estimates are informational, not formal appraisals, investment advice or guaranteed transaction prices.