How much is my startup worth
Most startups that stop growing are never valued on profit, because there is none. Buyers use one of two methods instead, and this calculator uses whichever gives the higher figure, then adds the assets that come with the sale.
How the calculator values a startup with revenue
Revenue that will survive the handover is valued on a multiple of revenue over the last twelve months. The multiple is 2x when revenue is growing, 1.25x when flat and 0.6x when declining. Revenue from a product that is offline or unfinished is halved, since much of it will not transfer.
How the calculator values a startup with no revenue
Without revenue the starting point is replacement cost, what a buyer saves by not rebuilding the product. AI coding tools have made software far quicker to recreate, so this is lower than founders expect. A product built in under three months starts at around $750, and one built over more than two years at around $15,000.
The age of the codebase matters too. Code over a year old is discounted, and code over four years old is worth less than half as much, because it is further from current tools and harder to pick up. Documentation adds ten percent, and an offline or unfinished product is discounted.
- Active users add the most, because they show the product is wanted
- Signed up but inactive users add a little, mainly as a mailing list
- A domain name, brand and app store listings each add a fixed amount
- Investment raised adds a small, capped amount as a signal of what was built
- Being available for a handover adds ten percent, because it lowers the buyer's risk
How to get a higher price
Almost everything that raises the price lowers the buyer's risk. Keep the product running, write down how it is deployed, confirm that the company owns all of the code, and be honest about the numbers. Read what is my failed startup worth and how much a startup codebase is worth for more detail.
Common questions
How much is my startup worth with no revenue?
Without revenue, buyers price a startup on what it would cost them to rebuild what transfers, then add value for active users, the domain and the brand. A small product built in under three months is usually worth $500 to $1,000. Larger, more recent products with active users reach a few thousand to the low tens of thousands.
Does the money my startup raised change its value?
Only a little. Buyers pay for what transfers to them, not for what was spent. Investment is treated as a small signal of how much was built and validated, capped so it never dominates the estimate.
How are startups with revenue valued?
On a multiple of revenue over the last twelve months that reflects how much of it will survive the handover. This calculator uses 2x for growing revenue, 1.25x for flat and 0.6x for declining, which is conservative for a startup that did not work out.
Why is my code worth less than I spent building it?
Because AI coding tools have made rebuilding software much cheaper. A buyer compares your price with what it would cost them to recreate the product today, not with what it cost you at the time. Older code is worth less again, because it is further from the tools and frameworks a buyer uses now.
Is this valuation accurate?
It is an estimate built on the methods buyers use, not an appraisal. The final price depends on who is buying, how well the product is documented and how quickly you need to sell.