Figure 1From “The Rule of 40 is a trade-off, not a target”
Four ways to arrive at 40
The crossing lines make the trade-off visible: the score stays at 40 while the commercial posture changes.
Figure 1Four ways to arrive at 40
Source: Author's illustrative worksheet. The examples use the common growth-plus-margin arithmetic and are not company benchmarks.

From the essay
Growth that compounds
The Rule of 40 is a trade-off, not a target
The Rule of 40 compresses growth and margin into one score. Use it to expose a trade-off and its timing, not to reward a team for crossing a line.
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