What is Gross margin?
Gross margin is revenue minus the direct cost of the goods sold, as a percentage of revenue. It excludes overheads like software and salaries.
Example
Revenue of $10,000 with $6,000 COGS gives a 40% gross margin.
Why it matters
Gross margin is the pool that must pay for advertising, overheads and profit.
Calculate it: Profit Margin Calculator
Margin from price, or price from margin
Flashcard
Question
What is gross margin?
Tap to reveal the answerAnswer
Gross margin is revenue minus the direct cost of the goods sold, as a percentage of revenue. It excludes overheads like software and salaries.