Research / Calculators

Rule of 40 Calculator

Calculate a comparable Rule of 40 score from current and prior revenue plus a selected profitability basis. The interactive calculator also shows the growth or margin that would equal 40.

Rule of 40 formula

Rule of 40 score = growth rate + profitability margin

Use a consistent growth basis, profitability basis, and measurement period. The full method, worked examples, source notes, and FAQs are in editorial curation.