05 / FINANCIAL HEALTH
SaaS financial health calculator
Margins, EBITDA, Rule of 40, burn multiple and runway, with a straight read on which one to fix first.
All calculatorsYOUR INPUTS
Every field is explained underneath it
$120,000
Monthly recurring revenue, subscriptions only, no one off or services income.
6%
How much bigger MRR is than last month. 8 percent a month compounds to roughly 150 percent a year.
78%
Revenue left after hosting, support and third party APIs, before salaries or marketing. Under 60 percent and buyers stop treating you as software.
$45,000
Ad spend, agency, and sales and marketing salaries combined.
$38,000
Developers, designers and product, meaning everything building the thing.
$16,000
Admin, legal, finance, tooling and owner comp.
$900,000
Total cash available today.
RULE OF 40 SCORE
97
101% annual growth plus -5% EBITDA margin
ARR
$1.44M
EBITDA / month
-$5,400
Runway
167 mo
MONTHLY P AND L SHAPE
Gross profit
78% gross margin
$93,600
Total opex
Sales and marketing 38%, product 32%, G and A 13% of revenue
$99,000
EBITDA margin
Owner adjusted operating margin
-4.5%
Annualised growth
Median B2B SaaS has fallen to roughly 18 to 26 percent
101%
Burn multiple
Net burn divided by net new ARR. Under 1.5x earns a premium.
0.75x
ARR in 12 months
At the current monthly growth rate
$2.90M
Sales and marketing efficiency
Net new ARR added this month per dollar of this month of spend
1.92x
THE VERDICT
You are in premium territory, so do not discount yourself
A Rule of 40 score of 97 puts you in the band that clears 7 times ARR and above. Hold the line on price and keep the growth rate legible in your reporting.
HOW THIS IS CALCULATED
- Rule of 40 is the annualised growth rate plus the EBITDA margin. Above 40 is where premium multiples live.
- EBITDA here is owner adjusted, so add back one off costs and above market owner comp before you read it.
- Burn multiple is the cleanest single read on capital efficiency, and efficient companies under 1.5x trade at a 30 to 40 percent premium to peers above 3x.
- Runway assumes flat burn, so model it again with your hiring plan before you rely on it.
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Estimates only, for general information. Outputs depend entirely on the accuracy of your inputs. Benchmarks reflect 2026 lower middle market SaaS data. Nothing here is financial, tax, legal or investment advice, and no advisory relationship is created by using this page.