Rule of 40 Calculator · Technology
Rule of 40 Calculator for Technology.
The SaaS health metric every board uses.
Technology companies built to compound.
Finance & Strategy · Technology
Why technology operators use the rule of 40 calculator.
A SaaS company should have revenue growth rate + operating margin ≥ 40%. Below 40%, the business is consuming value to grow.
Technology companies operate in a market that rewards speed, focus, and durable compounding. SAZ partners with founders and operators in software, SaaS, infra, and tech-enabled services to sharpen strategy, fix growth, and scale operations.
Benchmarks
What good looks like — typical ranges to compare against.
< 20%
Underperforming — premium discount applied
20–40%
Below benchmark — pressure to improve
40–60%
Healthy — meets SaaS bar
> 60%
Elite — best-in-class
The formula
How rule of 40 calculator is calculated.
Rule of 40 = Revenue Growth Rate + Operating MarginIndustry context
What changes when rule of 40 calculator is applied to technology.
PMF, positioning, and ICP
Growth model and channel mix
Pricing, packaging, and retention
Scaling org and ops
Run the numbers
Open the rule of 40 calculator.
Free, instant, no signup.
Rule of 40 Calculator · Technology
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