Finance & Profitability
Rule of 40
Calculator
Calculate your Rule of 40 score, SaaS Magic Number, and burn multiple. Benchmark against elite SaaS companies and find the optimal balance between growth and profitability.
Revenue Metrics
$
$
%
$
Profitability & Efficiency
%
%
$
$
ARR$10.0M
Growth40%
EBITDA Margin5%
QuadrantGrowth Mode
Rule of 40
45%
Passing
Magic Number
3.33x
Efficient
R40 (FCF)
43%
Using FCF margin
Burn Multiple
0.3x
Efficient
Growth + Profitability Score
Rule of 40 Score45% (Target: 40%)
40%
Growth: 40%+ Margin: 5%= 45%
Growth
40%
High Growth
EBITDA Margin
5%
Breakeven
SaaS Magic Number
3.33x
Invest more in S&M
Quadrant
Growth Mode (High Growth, Low Profit)
Rule of 40 = Revenue Growth + Profit Margin. You're passing at 45% — this signals strong combined health.
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Frequently Asked Questions
Common questions about the Rule of 40 Calculator