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Understanding Rule of 40 SaaS

 
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Daniel Lopez
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 Daniel Lopez
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Apr 06, 2025 3:06 pm
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I keep seeing Rule of 40 mentioned for SaaS companies, but I don’t get it. I run a small SaaS tool and want to know if I am on track. What’s the Rule of 40 in SaaS, and how do I calculate it with my limited data?

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Topic Tags:  rule of 40 saas , metrics , technology (523) , business (174) , SaaS (397) ,
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