Valuation Lab · Calculator
Most private software companies are not pure SaaS: they carry maintenance on an installed base, occasional perpetual licence sales and a services team. This calculator models each stream with its own retention, growth and gross margin, consolidates shared operating costs once, and values the whole business on adjusted EBITDA using the 2026 B2B software band for its earnings size, with a DCF cross-check. It does not capitalize every revenue dollar at a SaaS multiple.
The error this tool is built to prevent is the sum-of-parts shortcut: applying a SaaS multiple to subscription revenue, a services multiple to services, and adding them up without allocating the shared costs that make the whole company profitable. Buyers price the consolidated earnings. A sum-of-parts case can be argued in a process, but it needs explicit central-cost allocation and financial review, which is why it is not automated here.
Pure subscription businesses should use the SaaS calculator, which models customer acquisition and retention monthly. This page is for the hybrid company that needs its mix understood before its value can be.
The interactive calculator loads here. The published example scenario below is the same model (2026.09.22-1) evaluated at the example inputs.
Indicative enterprise value, whole-business EV / adjusted EBITDA (B2B software, $1M-$3M EBITDA): $11.0M. $8.9M to $13.0M at 5.5x to 8.0x; selected 6.8x
Revenue $8.0M, recurring share 69%, EBITDA $1.6M (20.3%). DCF present enterprise value cross-check: $12.3M. Every revenue dollar is not capitalized at a SaaS multiple: the anchor is consolidated earnings after shared costs. Band: Windsor Drake EBITDA multiples by industry, Aug 2026 (analyst ranges informed by GF Data Q1 2026, BizBuySell Q2 2026, NYU Stern Jan 2026).
Recurring share: 69% · Gross profit: $5.8M · Adjusted EBITDA: $1.6M · DCF present EV: $12.3M
| Segment | Revenue | Gross profit |
|---|---|---|
| Subscription | $4.0M | $3.2M |
| Maintenance | $1.5M | $1.3M |
| Perpetual licences | $1.0M | $900K |
| Professional services | $1.5M | $450K |
| Total | $8.0M | $5.8M |
| Shared operating costs (allocated once) | -$4.2M | |
| Adjusted EBITDA | $1.6M | |
| Enterprise value at selected multiple | $11.0M | |
| Equity value | $11.0M |
A sum-of-parts method (SaaS multiple on subscriptions, services multiple on services) requires explicit central-cost allocation and financial review; it is not applied automatically here.
| Input | Value |
|---|---|
| Subscription revenue (annual) | $4,000,000 |
| Subscription net retention | 105% |
| Maintenance revenue (annual) | $1,500,000 |
| Maintenance retention | 92% |
| Perpetual licence revenue (annual) | $1,000,000 |
| Professional services revenue (annual) | $1,500,000 |
| Shared operating costs (annual) | $4,200,000 |
| Subscription gross margin | 80% |
| Maintenance gross margin | 85% |
| Licence gross margin | 90% |
| Services gross margin | 30% |
| New subscription growth (on top of retention) | 10% |
| Licence sales growth | -10% |
| Services growth | 3% |
| Owner compensation normalization (+) | $0 |
| Selected EBITDA multiple (0 = band midpoint) | 0x |
| Discount rate (WACC) | 13% |
| Excess cash | $0 |
| Debt | $0 |
The header reports recurring share (subscription plus maintenance over total revenue). Above roughly 70% recurring with maintenance retention above 90%, buyers begin to underwrite the company like SaaS and the position inside the band rises. Below 50% recurring, or with a licence line still shrinking, the company is priced as a services-heavy software business and the DCF cross-check usually sits closer to the answer than the top of the band.
Exploring what your company is worth? A principal will give you a confidential perspective on how the market is pricing businesses like yours: current multiples, the acquirers active in your sector, and where your company would likely land.
On consolidated adjusted EBITDA, with the multiple influenced by recurring share and maintenance retention. Windsor Drake’s 2026 band for profitable B2B software runs 5.5x-8.0x at $1M-$3M EBITDA to 9.0x-13.0x above $10M.
You can argue it in a process, but only with explicit allocation of shared costs and a financial review. Adding segment values without allocating costs overstates the company.
Because it runs off the installed base at its retention rate. New perpetual licences replenish it in practice; set licence growth positive to reflect that.
Services carry 30% gross margin by default and reduce recurring share; the company will sit lower in the band and the DCF cross-check becomes the more reliable read.
Enterprise value is quoted cash-free and debt-free; equity value adds excess cash and subtracts debt and debt-like items, before fees, taxes, escrow, rollover and earn-outs. Every method states its denominator, period (trailing twelve months unless labelled), currency (USD) and treatment of cash and debt. Results are ranges under stated assumptions, not statistical confidence intervals. Company inputs stay in the browser and are never transmitted. Benchmark snapshot 2026.09.22-1; model 2026.09.22-1; changes are recorded in the Valuation Lab changelog in the Windsor Drake repository.
Benchmark: SaaS valuation multiples · Related: SaaS valuation calculator · DCF calculator · Vertical SaaS valuation report · All valuation tools