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Calculators / Business / SaaS Rule of 40
SaaS Rule of 40 calculator
Combine revenue growth and profit margin for a SaaS benchmark.
On this page
Rule of 40 score43percentage points
Difference from 403percentage points
Calculator controls
How to calculate
Combine revenue growth and profit margin for a SaaS benchmark.
score = annual growth rate + selected profit margin
Worked example
Annual recurring revenue growth (%): 28; Profit or free-cash-flow margin (%): 15.
Rule of 40 score: 43 percentage points; Difference from 40: 3 percentage points.
Assumptions and limits
Define the revenue period and profitability metric consistently. This benchmark is not a valuation or investment recommendation.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Combine revenue growth and profit margin for a SaaS benchmark. The result follows the displayed formula and keeps every adjustable assumption visible.
When this tool is useful
Use this tool to plan quantities or compare scenarios before making a purchase or technical decision.
Understanding your inputs
| Input | What to enter |
|---|---|
| Annual recurring revenue growth (%) | Enter a number of at least -100 and no more than 1000. |
| Profit or free-cash-flow margin (%) | Enter a number of at least -1000 and no more than 1000. |
Frequently asked questions
What can change the saas rule of 40 result?
Define the revenue period and profitability metric consistently. This benchmark is not a valuation or investment recommendation.
Should I round the inputs first?
No. Enter the best measurements available and round only the practical final quantity, such as full packs, boards, sheets, or components.