How to use this calculator
- Enter annual revenue growth (%), chosen profit margin (%).
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Score = growth percentage + profit-margin percentage.
Assumptions and limitations
Specify EBITDA, operating or cash-flow margin consistently; the model does not certify business quality.
Worked example
With annual revenue growth (%) = 30, chosen profit margin (%) = 15, rule of 40 score is approximately 45.
What the result means
The score combines growth and profitability; 40 is a convention, not a valuation guarantee.
Common questions
How should I interpret rule of 40 score?
The score combines growth and profitability; 40 is a convention, not a valuation guarantee.
What should I check before using this result?
Specify EBITDA, operating or cash-flow margin consistently; the model does not certify business quality.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.