How much is my code/product worth?


I wrote two Apps and want to know how much they are worth. Background: for one I am looking for an investor / somebody who wants to buy it. For the second one I am just interested to know the price in case an investor or another entrepreneur wants to step up. I am curious how to calculate the value of the products.

Product 1:
It's a working prototype with Website for different parties to login (customer and seller). Customers can pre-order products by Android app. The Seller gets a notification and prepares the goods.
This is basically very simple and made for a specific niche. Total working time was 3 weeks. It would need some polishing designwise, but then it can be use instantly.

Product 2:
Product in production with 1200 users at the moment. It has a good bunch of features, but would need a second developer to become big. One man show (me) but works well with iphone and android app. Several months working time.

Of course nobody can value this for me in this forum. But I am interested in some gut feelings and if there is some kind of excelsheet around which helps to identify some points which make a product more worthfull or less.

Products Valuation Calculation

asked Jun 16 '12 at 17:48
3,590 points

3 Answers


I tend towards "Yearly revenue x 10". But this is for products that are profitable and which you don't need or really want to sell off. The figure will be probably much lower when you try to sell off a product which doesn't generate revenue.

answered Jun 17 '12 at 18:14
268 points
  • +1 for mentioning yearly revenue. the factor is usually between 3 and 5, 10 is high. – James 12 years ago


For a base calculation, I would calculate the value of the products based on time spent. I've found that the hourly rate calculator from FreelanceSwitch is a good tool for this.

answered Jun 17 '12 at 09:35
Camel Blues
185 points


I think in general, selling a business is much easier if you have customers, or at least users. The more influence you have, the more that group of customers can be utilized. The freemium model is very powerful, and a large user-base translates to many opportunities.

IMHO, you'll have a much higher valuation for the second product than the first, since people are using it, and you spent more time on it.

answered Jun 18 '12 at 00:35
John Z
216 points

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Products Valuation Calculation