The Rule of 40 SaaS | How to Calculate and Why It Matters in 2025? (Updated)

Rule of 40

The rule of 40 in SaaS is a simple financial framework that balances revenue growth versus profit margins. It’s a rule of thumb to quickly determine the health and/or attractiveness of your SaaS company. You’ve probably heard of the rule of 40, but the application of the formula can be somewhat ambiguous. What exactly is […]