📏Interactive Tool
Rule of 40 Calculator
The Rule of 40 states that a SaaS company's growth rate plus profit margin should exceed 40%. Used by VCs and boards to evaluate SaaS health.
The Formula
Revenue Growth %+Profit Margin %≥ 40
High growth can justify lower margins, and high margins can offset slower growth.
EBITDA margin or operating margin
Rule of 40 Score
45
Passing — Passing
Revenue Growth
30.0%
Profit Margin
15.0%
04080+
Email Me These Results
Get your calculation + related frameworks and templates.
or use email
Get this + weekly PM tools and templates.