Gross Margin Calculator

Calculate gross margin percentage. Understand profitability before operating expenses.

This tool calculates gross margin — the percentage of revenue remaining after cost of goods sold (COGS). For SaaS, COGS typically includes hosting, support, and third-party services. Results are illustrative estimates based on the inputs you provide.

Calculator

$
$
Gross Margin
80.00%
Gross Profit
$80,000.00
COGS as % of Revenue
20.00%
Revenue
$100,000.00

Common use cases

  • Profitability analysis
  • Pricing decisions
  • Operational efficiency tracking
  • Investor reporting

How to use

  1. Enter your total revenue
  2. Enter your cost of goods sold
  3. View your gross margin percentage and profit

FAQ

What's included in SaaS COGS?

Typically: hosting/infrastructure, payment processing, customer support costs, and third-party software costs directly tied to service delivery.

What's gross margin vs. net margin?

Gross margin excludes operating expenses like sales, marketing, and R&D. Net margin includes all expenses.

Results are illustrative estimates based on the inputs you provide.