Profitability, leverage, valuation, liquidity, working-capital, and capital-cost ratios.
View all Financial Ratio CalculatorsRecurring revenue, retention, acquisition efficiency, and growth quality metrics.
View all SaaS MetricsWorkforce capacity, safety, productivity, and operating cadence calculators.
View allPaid media, funnel economics, sales efficiency, and customer growth tools.
View all Marketing Performance & GrowthValuation, returns, capital allocation, and investor decision support.
View all Investment & ValuationCash generation, working capital, liquidity, and financial resilience calculators.
Rule of 40 adds SaaS revenue growth and profitability margin to evaluate growth efficiency.
Rule of 40 is a SaaS performance heuristic that adds revenue growth and profitability margin. It balances growth and profitability rather than rewarding growth at any cost.
Rule of 40 = Revenue growth rate + Profitability margin
The profitability margin can be EBITDA margin, free cash flow margin, or another consistent profit measure. Use it with SaaS CAC payback benchmarks and SaaS net revenue retention benchmarks.
Related calculator: SaaS Rule of 40 Calculator.