Turn a five-year SaaS profit-and-loss history into a focused view of the trade-off between revenue growth and operating profitability.
This Excel workbook organizes annual revenue, cost of goods sold (COGS), and operating expenses, then calculates the margins and growth rates used to derive the Rule of 40. Founders, finance teams, operators, and investors can use the resulting ratio and chart to compare performance across years and discuss whether growth and earnings are moving in a balanced direction.
Connect growth with profitability
Review revenue growth and EBITDA margin together instead of interpreting either measure in isolation.
Track the ratio over time
Compare annual Rule of 40 results across four calculated periods to see whether the combined measure is strengthening or weakening.
Support focused performance reviews
Bring one structured table and chart into management, planning, or investor discussions about SaaS growth quality.
How does SaaS growth compare with operating profitability?
The workbook places the underlying P&L figures, percentage margins, and Rule of 40 result in one annual view. The ratio combines revenue growth with EBITDA margin, making it easier to evaluate whether faster growth is accompanied by improving profitability, funded by lower margins, or offset by operating pressure.
Calculate year-over-year revenue growth from the annual revenue figures entered in the model.
Review COGS as a percentage of revenue alongside gross margin and gross margin percentage.
Measure operating expenses as a percentage of revenue and follow their movement across the five-year table.
Calculate EBITDA and EBITDA margin from the entered revenue, COGS, and operating expense data.
Combine revenue growth and EBITDA margin into the Rule of 40 ratio and compare the annual results with the commonly used 40% reference point.
What is inside the workbook?
The visible model is built around a single five-year financial table and an accompanying Rule of 40 chart. The yellow cells identify the annual P&L figures used as inputs, while the remaining rows organize calculated operating metrics and the final ratio for each applicable year.
Editable financial inputs
Enter annual revenue, COGS, and operating expenses for five periods using figures from the company’s profit-and-loss reporting.
Calculated margin analysis
Review revenue growth, gross margin, gross margin percentage, operating expense percentage, EBITDA, and EBITDA margin in the same table.
Ratio history and chart
See the annual Rule of 40 percentages summarized in a row and visualized as a column chart for quicker comparison.
The workbook view shows five years of revenue, COGS, operating expenses, EBITDA, percentage margins, annual Rule of 40 results, and a four-column ratio chart.
Five-year Rule of 40 analysis view
The financial table keeps the input figures and calculated outputs close together, so users can trace each annual result back to the supporting P&L data. The chart below the table highlights changes in the ratio from one year to the next, helping users identify the periods that deserve a closer review of growth, gross margin, operating expenses, or EBITDA margin.
How do you use the template?
Collect annual P&L figures
Prepare five periods of revenue, COGS, and operating expense data on a consistent accounting basis.
Enter the financial inputs
Replace the example values in the highlighted input cells with the corresponding annual figures for the SaaS business.
Review the calculated metrics
Check revenue growth, gross margin, expense ratios, EBITDA, and EBITDA margin before relying on the combined measure.
Compare the annual Rule of 40 results
Use the ratio row and chart to identify trends, explain changes, and frame the next operating or planning discussion.
Who is this template for?
This workbook is designed for SaaS founders, chief financial officers, finance managers, operating leaders, revenue teams, analysts, and investors who already have annual P&L data and need a concise way to evaluate growth and profitability together. It is particularly useful for historical KPI reviews, board or management reporting preparation, performance trend analysis, and discussions about whether operating margins are keeping pace with revenue growth.
