Rule of 40 Sandbox
Check whether your growth-plus-profit clears the Rule of 40.
%
%
EBITDA or FCF margin (can be negative).Rule of 40 score
47%
Growth + margin
Threshold
40%
The bar to clear
Verdict
Pass
+7% over
At 47% you clear the Rule of 40 — your blend of growth and profitability signals a healthy, fundable business. Investors read this as efficient scaling.
The Rule of 40 says growth and profit are tradeable: burn is acceptable if you're growing fast enough to offset it. It matters most from Series B onward.
About this calculator
Add your year-over-year growth rate to your profit margin to see if you clear the Rule of 40 — the balance investors use to judge healthy SaaS scaling.
Everything runs in your browser — nothing you type is sent anywhere or stored. Use it to sanity-check a plan, pressure-test a channel, or brief a team before you commit budget.