Rule of 40 calculator

It takes Revenue growth rate (%) and Profit margin (%) and derives Rule of 40 score and Result from them. The calculation is live as you type, so the result updates on every change.

2 values: Revenue growth rate (%) and Profit margin (%). Nothing else is required — no account, no file upload.

With Revenue growth rate (%) = 30 and Profit margin (%) = 15, the calculator returns Rule of 40 score = 45 and Result = pass. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

It moves a lot. Using Revenue growth rate (%) = 33 and Profit margin (%) = 17 instead, Rule of 40 score goes from 45 to 50 — which is why it is worth testing a few scenarios rather than trusting a single figure.

Scaled down to Revenue growth rate (%) = 27 and Profit margin (%) = 14, Rule of 40 score comes out at 41. The relationship is worth checking at both ends before you rely on a single result.

Reporting to an investor or a board: what recurring revenue really is this month, what churn is costing, and how long it takes to earn back an acquisition.

Counting annual contracts at their full value in the month they are signed. MRR is the monthly-equivalent figure; booking a year of revenue in one month makes growth look like a step change that then reverses.

This one returns Rule of 40 score and Result; the CAC payback period calculator returns Payback period (months). That is the whole difference — open the one whose figure you need.

Customer lifetime value (CLV) calculator is the closest one after this: What a customer is worth over the whole relationship: margin per period ÷ (1 + discount − retention), which also tells you the average lifespan 1/(1 − retention). Higher retention and margin stretch it; the discount rate reins it back to today's money.

These definitions come from how subscription businesses report, not from an accounting standard — churn in particular is defined half a dozen ways, so state which one you used alongside the number.