CalculateMeasure

Business

Rule of 40 Calculator

Calculate the SaaS Rule of 40 score by combining revenue growth and profit margin.

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Calculator guide

How to use the Rule of 40 Calculator

Calculate the SaaS Rule of 40 score by combining revenue growth and profit margin. Enter the requested values and select Calculate. The result and supporting values are produced locally in your browser.

Formula

Rule of 40 Score = Revenue Growth % + Profit Margin %

Worked example

30% revenue growth plus a 15% profit margin produces a Rule of 40 score of 45%.

What to keep in mind

  • Organizations may use different definitions of revenue growth and profitability (for example EBITDA or free-cash-flow margin).
  • Use consistent definitions when comparing companies.

Methodology

This calculator uses deterministic arithmetic and performs the calculation locally in your browser. Verify assumptions, units, and source values for your specific use case.

Review standard: Level B · Industry formula. How calculator reviews work.

Frequently asked questions

What does this calculator calculate?

Calculate the SaaS Rule of 40 score by combining revenue growth and profit margin.

How is the result calculated?

Rule of 40 Score = Revenue Growth % + Profit Margin %.

Can I use the result for an important decision?

Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.

Does CalculateMeasure store the values I enter?

The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.