Rule of 40 calculator

The Rule of 40 says your annual revenue growth rate plus your profit margin should add up to at least 40. Enter both to get your score. Early-stage startups often miss it, and that's normal — it becomes meaningful from Series A.

Annual revenue growth

EBITDA margin

Rule of 40 scoreiRule of 40 = growth rate % + profit margin %. 40 or above is the healthy bar for SaaS.

⚠️Below 40. Normal for early-stage startups (you are pre-scale); it becomes meaningful from Series A.

Rule of 40 explained →

Rule of 40 = annual growth % + EBITDA margin %.

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Last updated: June 25, 2026. For information only — not financial advice.