# Rule of 40 Analyzer MCP > Rule of 40 Analyzer helps you figure out if your software business is actually healthy or just burning cash. It takes your revenue growth and your profit margins to give you a single score. You can see where you stand against industry benchmarks and track your performance over the last twelve months to spot trends before they become problems. It's the fastest way to get a clear health status for your SaaS. ## Overview - **Category:** finance - **Price:** Free - **Tags:** rule-of-40, saas-metrics, financial-analysis, profitability, revenue-growth ## Description Imagine you're looking at a spreadsheet of growth rates and EBITDA margins, trying to figure out if your software business is actually performing well or just burning cash to keep the lights on. You need a clear number to tell you if you're hitting the industry standard. This MCP handles that math for you. Instead of jumping between tabs to calculate trailing twelve-month averages or trying to remember what the average growth for a fintech company looks like this year, you just ask your agent. It pulls the numbers, runs the math, and tells you exactly where you land. It's built for people who need to move fast and make decisions based on hard data. Whether you're prepping for a board meeting or just checking your own pulse as a founder, you can get a clear picture of your efficiency in seconds. You can find this and hundreds of other tools in the Vinkius catalog to keep your stack organized. It turns a messy pile of financial data into a clear healthy or risk status so you can focus on actual growth instead of manual math. It's about getting the big picture without the headache of manual calculation. You get to stop being a human calculator and start being a strategist. By automating the heavy lifting of financial aggregation, you can spend your time on high-level planning rather than chasing down quarterly percentages. ## Tools ### compare_to_sector_peers Checks your score against standard benchmarks for SaaS, Fintech, or Cloud. ### compute_ttm_metrics Aggregates quarterly data to find your trailing twelve-month performance score. ### calculate_rule_of_40 Calculates your Rule of 40 score and assigns a performance tier. ## Prompt Examples **Prompt:** ``` Calculate the Rule of 40 score for a company with 35% revenue growth and 10% EBITDA margin. ``` **Response:** ``` The Rule of 40 score is 45%, which places the company in the Healthy performance tier. ``` **Prompt:** ``` How does a company with a 70% score compare to the Software (SaaS) sector average? ``` **Response:** ``` A score of 70% is significantly above the Software (SaaS) sector average, showing a positive benchmark gap. ``` **Prompt:** ``` Analyze my quarterly performance: [{ growthRate: 40, margin: 5 }, { growthRate: 38, margin: 7 }, { growthRate: 35, margin: 10 }, { growthRate: 30, margin: 12 }] ``` **Response:** ``` The TTM Rule of 40 score is 45% with a declining trend status. ``` ## Capabilities ### Score your SaaS health instantly Get a single metric that combines your growth and profitability into a clear performance score. ### Calculate trailing twelve-month averages Aggregate your last four quarters of data to see your long-term performance trend. ### Compare your numbers against peers See how your score stacks up against standard benchmarks for SaaS, Fintech, or Cloud. ### Identify your performance tier Find out if your company falls into the Risk, Healthy, or Elite categories. ### Spot declining growth trends Identify whether your performance is improving or slipping over time. ## Use Cases ### Validating growth vs. margin A founder wants to know if 30% growth justifies a 5% margin. They ask the agent to calculate the Rule of 40 score to see if they are in the Healthy tier. ### Due diligence benchmarking A VC analyst needs to see if a startup is healthy compared to other SaaS companies. They use the peer comparison tool to get a benchmark gap. ### Quarterly trend analysis A finance lead wants to see if the last four quarters show a downward trend. They use the TTM metrics tool to aggregate the data into one score. ### Checking Elite status A startup owner wants to know if they have reached Elite status. They run the score and see their tier ranking immediately without opening a spreadsheet. ## Benefits - Stop guessing your growth status. Use `calculate_rule_of_40` to get a definitive score that shows if you're in the Risk, Healthy, or Elite tiers based on your real numbers. - Get a clear view of long-term trends. Use `compute_ttm_metrics` to stop looking at single quarters and see how you've performed over the last twelve months. - Stop comparing your apples to oranges. `compare_to_sector_peers` lets you see how you stack up against actual peers in Fintech or Cloud so you know where you actually stand. - Save hours of manual spreadsheet work. Your agent does the heavy lifting of aggregating data and running the math for you, so you can spend your time on strategy. - Make better board presentations. You can provide your team with a standardized metric that the industry actually respects, making your reports look professional and accurate. ## How It Works The bottom line is it turns raw financial data into a clear ranking of your company's health. 1. Provide your current revenue growth rate and profit margin. 2. Tell your agent which industry sector you want to compare against. 3. Get a performance score, a tier ranking, and a peer comparison. ## Frequently Asked Questions **What is the Rule of 40 Analyzer?** It's an MCP that calculates your SaaS health by combining growth rates and profit margins into a single score. **How does Rule of 40 Analyzer handle TTM metrics?** It uses `compute_ttm_metrics` to pull in and aggregate your quarterly data over the last twelve months. **Can Rule of 40 Analyzer compare me to other companies?** Yes, `compare_to_sector_peers` checks your score against standard benchmarks for SaaS, Fintech, and Cloud. **What tiers does Rule of 40 Analyzer use?** It categorizes your performance into Risk, Healthy, or Elite based on your specific score. **Is Rule of 40 Analyzer good for non-SaaS companies?** It's specifically built for software and SaaS businesses to evaluate growth versus profitability. **What specific data does the `calculate_rule_of_40` command require?** You need to provide a revenue growth rate and a profitability margin, like EBITDA or FCF. The MCP uses these two numbers to calculate your score and assign a performance tier. **Can I use the Rule of 40 Analyzer with Cursor or Windsurf?** Yes, it works with any MCP-compatible client, including Claude, Cursor, and Windsurf. You just connect the MCP to your preferred agent to start running analysis. **What industries are available in the `compare_to_sector_peers` tool?** It benchmarks against Software (SaaS), Fintech, and Infrastructure/Cloud. These categories help you see how your company's score stacks up against established industry standards.