Rule of 40 Calculator

Calculate the Rule of 40 — the key SaaS health metric combining revenue growth rate and profit margin. Enter growth rate and EBITDA margin to see if your SaaS company meets the 40% benchmark.

What is Rule of 40 Calculator?

The Rule of 40 Calculator helps SaaS companies measure their overall health and balance between growth and profitability.

How to Calculate

Enter revenue growth rate.
Input profit margin.
View score and pass/fail.

Example

With 30% growth and 15% profit margin, your score is 45%, which passes the Rule of 40.

Key Benefits

Get accurate rule of 40 calculator results instantly
Save time with rule of 40 calculator calculations
Make informed decisions with clear data
Free on any device no downloads

Common Mistakes to Avoid

Using inaccurate inputs
Ignoring key factors
Misinterpreting outputs

Pro Tips

Double-check inputs for accuracy
Run multiple scenarios
Combine with other tools

Key Terms Explained

Input: Values you provide
Output: Results computed
Formula: Method used
Result: Calculated answer

Common Use Cases

Investor reporting
Strategic planning
Performance benchmarking

Frequently Asked Questions

What is the Rule of 40?

The Rule of 40 states that a SaaS company's growth rate plus profit margin should equal 40% or more.

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Rule of 40 Calculator

Calculate the Rule of 40 — the key SaaS health metric combining revenue growth rate and profit margin. Enter growth rate and EBITDA margin to see if your SaaS company meets the 40% benchmark.

Revenue Growth Rate (%)

Profit Margin (%)

Rule of 40 Score

Passes Rule of 40

No ✗