Gross Margin

Percentage of revenue remaining after cost of goods sold

FinanceSaaS / SoftwareE-commerce / RetailManufacturingPercentageMonthly

FORMULA

Gross Margin = ((Revenue - COGS) / Revenue) × 100

What is Gross Margin?

Gross Margin represents the percentage of total revenue that exceeds the cost of goods sold (COGS). It shows how efficiently a company produces its goods or delivers its services. For SaaS companies, gross margins are typically 70-85%. For manufacturing, 25-35% is common. Gross margin is a key input for LTV calculations and overall business health assessment.

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— · Gross Margin

Required Data Columns

RevenueCost of Goods Sold