SaaS Rule of 40
Score Rule of 40 — growth rate plus profit margin — for SaaS health at a glance. Prove 40+ to investors — free, local, no signup.
How to Use the SaaS Rule of 40
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Frequently Asked Questions
How is it computed?
Revenue growth % plus profit margin %: 30% growth with 15% margin scores 45. Above 40 signals healthy scaling. Both presets (25%+20% and 40%+5%) score 45 — a Pass; anything under 40 reads Below threshold. Explicit Calculate click.
Growth vs profitability tradeoff?
Early stage favors growth (60+0 acceptable); mature favors balance. The sum matters more than the mix.
What if the score is below 40?
Diagnose which half lags: stalled growth needs GTM work, negative margins need unit-economics fixes. One lever at a time.
Do rule inputs upload?
No — math runs locally in your browser. Figures never leave your device.
Last updated October 2026