SaaS Rule of 40 Calculator

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.

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.

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

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.