Ben Murray

The Rule of 40 is a SaaS financial metric that balances revenue growth versus profit margins. It’s a rule of thumb to quickly determine the health and/or attractiveness of your SaaS company.

Renewal rate is the percentage of customers who renew their subscription within a defined invoicing cohort, measured against the total customers up for renewal in that period. It tracks churn and retention at the cohort level rather than against total customer count, making early trends easier to spot.