Free toolMetrics
Rule of 40 Calculator
Growth rate plus profit margin should exceed 40. It is crude, but it is the first filter a lot of investors apply, so it is worth knowing where you land.
Your numbers
Result
Rule of 40 score
47
- Distance from 40
- 7
What this means
You clear the bar. Growth and profitability are in a defensible balance.
Questions people ask
Does the Rule of 40 apply early on?+
Not really. Below roughly $1M ARR growth rates are too volatile for it to mean much. It becomes a useful screen at scale.
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