Rule of 40 SaaS Calculator
Check if your SaaS meets the Rule of 40 benchmark.
Rule of 40 Calculator
SaaS Health Metric
%
Annual percentage increase in ARR.
%
Your net profit percentage (can be negative).
The Formula
50%+-5%=45%
Combined Score
45%
Healthy (Rule of 40 Met)
Where you stand
Elite (50%+)
Healthy (40%) Your Business
Passing (20%)
Distressed (<20%)
"The Rule of 40 suggests that if your growth and profit add up to 40%, you are effectively balancing scaling with sustainability. Companies above 40% often command significantly higher valuation multiples."
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