Rule of 40 + SaaS health score
Benchmark growth efficiency using Rule of 40 and burn multiple. Share a clear health snapshot with investors or your team.
Rule of 40
Combine growth and profitability into a single KPI.
Burn multiple
Compare burn to net new ARR generation.
Health score
Convert Rule of 40 into a 0-100 health score.
Enter SaaS metrics
Use annual values for ARR and net burn.
Founder tip
Investors use Rule of 40 to compare SaaS efficiency across growth stages. Keep it updated monthly.
Health snapshot
A quick view of growth efficiency and burn.
Rule of 40
35.0%
Health score (0-100)
35
Net profit margin
-25.0%
Burn multiple
0.42
Gross profit
$900,000
Share this snapshot
Links include your inputs so teammates can review the same metrics.
How to interpret the score
The health score caps Rule of 40 at 100 to create a simple 0-100 index. Use it alongside burn multiple to explain efficiency in investor updates.
Keyword focus
Search intent: "rule of 40 calculator", "burn multiple", and "SaaS health score".
FAQs
What is the Rule of 40?
Rule of 40 adds growth rate and profit margin to gauge SaaS health. A combined 40% or more is often considered strong.
What is burn multiple?
Burn multiple compares net burn to net new ARR. Lower is better, and <1.5 is often a healthy benchmark.
Why include gross margin?
Gross margin shows how much of revenue is available to fund growth, which affects long-term efficiency.
Is my data stored?
No. All calculations run locally in your browser and nothing is stored on the server.