Home/Free Tools/Rule of 40 Calculator
Free Calculator — No account needed

Rule of 40 Calculator

The Rule of 40 states that a healthy SaaS company's revenue growth rate plus profit margin should equal or exceed 40%.

Rule of 40 Score
47
Passes the Rule of 40
35% growth + 12% margin = 47
Rule of 40 Score Benchmarks
< 20🔴 Below par — review growth and margins
20–39🟡 Approaching — tighten one of the two metrics
40–59🟢 Passes — investor-grade SaaS health
60+🟢 Elite — top-quartile SaaS performers
How to improve your score
  • Accelerate revenue growth by improving sales efficiency and CAC payback
  • Improve margins by reducing COGS, infrastructure costs, and headcount per dollar
  • Focus on net revenue retention — expansion MRR offset churn and boosts growth rate
  • Negative churn (NRR > 100%) is the fastest path to a high Rule of 40 score
List your tool on tools.cafe

Permanent listing, indexed by Google, discovered by AI assistants. Free to submit.

Submit your tool
Real Talkcoffee.txt

Hi! Quick story about coffee and indie builders.

You spent more than $15 on coffee this week. You'll spend more next week. And the week after that.

A Featured Brew costs $15. Once. No subscription. No renewal. Your tool pinned to the top of the feed for 7 days — in front of every founder browsing for their next stack.

The coffee is gone by noon. The listing stays for years.

The coffee is gone by noon. This isn't.

Same weekly spend. One lasts forever.

Get Featured Brew — $15