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Rule of 40 Calculator

Add revenue growth and free-cash-flow margin percentages for a Rule of 40 metric.

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Enter the two percentages using the same period and consistent definitions. The result is a descriptive sum only; it does not evaluate a company or apply a threshold.

Manual inputs stay in this browser. No external data is fetched.

Sources: Bessemer Venture Partners, Scaling to $100 Million

A QUICK WALKTHROUGH

How to use this tool

  1. Enter the two percentages using the same period and consistent definitions. The result is a descriptive sum only; it does not evaluate a company or apply a threshold.
  2. Rule of 40 metric (%) = revenue growth (%) + free cash flow margin (%).
  3. Manual inputs stay in this browser. No external data is fetched.

Formula

Rule of 40 metric (%) = revenue growth (%) + free cash flow margin (%).

Assumptions and limits

Enter the two percentages using the same period and consistent definitions. The result is a descriptive sum only; it does not evaluate a company or apply a threshold.

Sources

Bessemer Venture Partners, Scaling to $100 Million

GOOD TO KNOW

Common questions

Does the result evaluate a company?

No. It adds two user-entered percentages for the same period and does not apply a threshold.