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.
💡
Tip: The Rule of 40 becomes most relevant above $50M ARR. Early-stage startups should prioritise growth even at the expense of margin.
⭐
Fun Fact
Bain research shows SaaS companies scoring above 40 trade at significantly higher EV/Revenue multiples - often 2-3x higher.
🔒
100% मुफ़्त
कोई साइनअप नहीं
✓
सटीक
सत्यापित सूत्र
⚡
तत्काल
तुरंत परिणाम
📱
मोबाइल अनुकूल
सभी उपकरण