Finance

Rule of 40 Calculator

The classic SaaS health check: growth rate plus profitability margin. Benchmarks included.

Finance · SaaS health

Rule of 40

Growth + margin should clear 40. The line between premium SaaS and the rest.

As of May 13, 2026
Combined score · Growth + Margin
45/ 40
Strong35.0% growth + 10.0% FCF
Growth
35.0%
Margin
10.0%
R40
45.0
Stacked composition0 — 40 — 60+
40
Growth · 78%Margin · 22%Above the 40 line. Premium SaaS multiples live here.
01 · Inputs

Company numbers

TTM
Margin type
Growth + margin45.0 40
02 · Peer analysis

Public SaaS · Q4 2024

Where you sit vs 12 listed peersP58
R40
You · 45
0
80
Peer distribution7/12 above 40

Source: company earnings (10-Q/10-K), Clouded Judgement Q4 2024 · TTM revenue growth & FCF margin

Rule of 40 = revenue growth (%) + profitability margin (%). Above 40 is the bar public markets pay premium multiples for. FCF is the harder, cleaner test; EBITDA is the friendlier one.