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The Rule of 40 states that a SaaS company’s revenue growth rate plus profit margin should equal or exceed 40%, balancing growth and profitability.

Formel

Rule of 40 score = Revenue growth rate % + EBITDA margin %

Growth: Annual revenue growth rate (%)
Margin: EBITDA margin (%)

Trinn-for-trinn guide

1Rule of 40 = Revenue Growth Rate (%) + Profit Margin (%)
2Score >= 40 = healthy; >= 60 = excellent; < 40 = needs attention

Løste eksempler

Inndata

25% revenue growth, 18% operating margin

Resultat

Score = 43 - passes the Rule of 40

Ofte stilte spørsmål

What is Saas Rule Of 40?

The Rule of 40 states that a SaaS company’s revenue growth rate plus profit margin should equal or exceed 40%, balancing growth and profitability. Use this calculator for accurate, instant results.

How accurate is the Saas Rule Of 40 calculator?

The calculator uses the standard published formula for saas rule of 40. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Saas Rule Of 40 calculator use?

This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.

What formula does the Saas Rule Of 40 calculator use?

The core formula is: Rule of 40 = Revenue Growth Rate (%) + Profit Margin (%). Each step in the calculation is shown so you can verify the result manually.

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