Gross Margin

What is gross margin for SaaS?

Gross margin is the amount of money your business makes after Cost of Goods Sold (COGS), which includes infrastructure and support costs. See our definition of COGS to learn more.

How to calculate gross margin

Gross margin % = 100% – Cost of Goods Sold (COGS).

Formula to calculate gross margin.

Gross margin example

If your COGS is 30%, then your gross margin is 70%.