About Rule of 40 Calculator: SaaS Growth Plus Margin
Add annual revenue growth and EBITDA or free-cash-flow margin, then compare the score with 40.
Change the example inputs to match a scenario and review the methodology and limitations before using the result in a decision. Calculations run locally in your browser.
How the calculation works
Rule of 40 score
Annual revenue growth percentage + selected profitability margin percentage.
How to use this calculator
- 1Replace the example values with internally consistent inputs.
- 2Review all result cards and any not-applicable state.
- 3Compare multiple scenarios and verify important assumptions independently.
Understanding the result
A result of 42 is two percentage points above the reference threshold.
Use one clearly defined margin consistently when comparing periods or companies.
Important limitations
- Outputs are planning estimates and do not include every provider, accounting, financing, tax, legal, or operational factor.
- Invalid divisions are shown as not applicable rather than NaN or Infinity.
- Passing the heuristic does not guarantee quality, valuation, liquidity, or future performance.
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Frequently asked questions
What does the Rule of 40 Calculator: SaaS Growth Plus Margin calculate?
Add annual revenue growth and EBITDA or free-cash-flow margin, then compare the score with 40.
Are the results guaranteed?
No. Results are deterministic estimates from the values and assumptions you enter.
How should I use the result?
Use it for planning and scenario comparison, then verify current rates, costs, accounting definitions, and professional requirements that apply to your situation.
Is entered data uploaded?
No. The calculation runs in your browser.
Use with
These tools support a practical next or previous step in the same workflow.
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