Startup Valuation Calculator
Startup Valuation Calculator
This Startup Valuation Calculator estimates your company’s value using two common approaches adapted for Indian founders and investors: a simplified 5‑year discounted cash flow (DCF) and a revenue multiple method. You’ll enter your current annual revenue, growth rate, profit margin, discount rate, and an appropriate revenue multiple based on your sector. The tool returns each method’s estimate and a blended figure, with a clean chart and a clear formula breakdown.
Use it for investor discussions, goal-setting, and internal planning. Expect transparent logic, responsive design, and exportable results that you can share with stakeholders.
Plan your finances better today using our India-specific Startup Valuation Calculator.
Enter your startup details
Calculation logic
Inputs: Current annual revenue (R), growth rate (g), net profit margin (m), discount rate (r), revenue multiple (M). Projection horizon fixed at 5 years.
Revenue projection: Year t revenue = R × (1 + g)^t.
Profit (proxy for free cash flow): Year t profit = [Year t revenue] × m.
Discounting: Present value of year t profit = [Year t profit] ÷ (1 + r)^t.
Terminal value at year 5: TV = M × [Year 5 revenue]. Present value of TV = TV ÷ (1 + r)^5.
DCF valuation: Sum of present values for years 1–5 + present value of terminal value.
Multiple valuation: M × R (applies the multiple to current revenue as a quick market snapshot).
Blended valuation: Average of DCF and Multiple valuations to balance intrinsic and market signals.
💡 Smart financial tips for Indian users
- Choose a revenue multiple based on Indian sector peers; SaaS often commands higher multiples than D2C or services.
- Use conservative growth and margin assumptions; overestimating can inflate valuation and hurt negotiation credibility.
- Revisit your discount rate with risk in mind: stage, churn, CAC payback, and market cyclicality in India.
- Complement revenue multiples with profitability milestones; investors prefer a path to sustainable unit economics.
- Track GST-compliant invoicing; clean financials increase trust and can improve valuation outcomes.
- Benchmark with Indian exits and rounds, not just US comps; local capital markets differ in risk appetite.
- Model scenarios (best/base/worst) to prepare for valuation discussions and term sheet negotiations.
Example scenarios
👨💼 Arjun, 29, SaaS Founder in Bengaluru
Arjun’s startup makes ₹2.4 crore annually, growing at 60% with a 18% margin. With a discount rate of 20% and a 7x revenue multiple, the calculator shows a strong DCF, a higher market multiple, and a blended valuation he uses in investor pitches.
👩💻 Meera, 34, D2C Founder in Mumbai
Meera’s brand earns ₹1.2 crore, growing at 35% with a 12% margin. Using a 18% discount rate and a 3.5x multiple, she compares both methods and uses the blended value to set fundraising targets for the next 18 months.
How to use this calculator
Step 1: Gather your financial information
Collect your last 12 months’ total revenue, realistic next‑year growth assumption, target steady‑state net margin, an appropriate discount rate that reflects your risk, and a sector‑appropriate revenue multiple based on Indian comparables.
Step 2: Enter your inputs
Enter values carefully. Keep percentages within sensible ranges (e.g., margin ≤ 60%). Revenue multiple should reflect your model and sector maturity. All inputs must be positive and non‑zero to enable calculation.
Step 3: Click “Calculate”
We project revenue for 5 years using your growth rate, apply your margin to estimate profit, discount each year’s profit back to today using your discount rate, and add a terminal value using your chosen revenue multiple. We also compute a quick multiple‑only valuation.
Step 4: Review & download
Compare DCF vs. Multiple results and the blended figure. Use “Copy Results” for quick sharing or “Download PDF” to export a clean report including inputs, outputs (in rupees without symbols), and recommendations.
Step 5: Repeat & refine
Try different scenarios to set goals, understand sensitivity to growth/margins, and prepare for investor discussions. Revisit your assumptions quarterly as market conditions and your KPIs evolve.
Use this calculator as often as needed to fine-tune your financial decisions and reach your goals faster.
Frequently asked questions
It uses a simplified 5‑year discounted cash flow and a revenue multiple approach, then shows each value and a blended average for balance.
Growth rate, margin, discount rate, and revenue multiple drive results. Use realistic, defendable assumptions aligned with your Indian sector benchmarks.
DCF reflects intrinsic value based on cash flows, while multiples reflect market sentiment. Blending balances fundamentals and current market signals.
Often yes. It should reflect local risks: stage, competition, churn, CAC payback, regulatory factors, and macro conditions influencing required returns.
Study Indian comparables by sector, growth, margins, and capital efficiency. Earlier‑stage or slower‑growth models typically justify lower multiples.
Yes. Use “Copy Results” for quick sharing or “Download PDF” for a clean report including inputs, outputs (in rupees), and recommendations.
No. It’s an educational tool. For investment or fundraising decisions, consult a certified financial advisor or investment professional.
Bonus Advice: Stay consistent, track your financial habits, and let data-driven tools like this guide your wealth journey in India.
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Disclaimer
Disclaimer: The results and data provided by this calculator are based on industry‑standard formulas and assumptions. Actual financial outcomes may differ due to fluctuating market rates, financial institution policies, and personal decisions. Please consult a certified financial advisor before making any critical decisions. This tool is localized for Indian users only.