Join Our Business Leaders' Community  

Simple Gross Margin Step-By-Step Financial Calculator







Business Essentials

Breakeven Analysis


Gross Margin


Cost Markup


Set Price Using Markup


Return on Investment (ROI)



Sales and Marketing

Convert Leads to Sales



SaaS Metrics

Customer Acquistion Cost (CAC)


Customer Churn


Customer Lifetime Value (LTV)


Monthly Recurring Revenue (MRR)


SaaS Company Viability



What is Gross Margin?



Gross margin, or profit margin, is the percentage of profit you earn after deducting the costs of goods sold from revenue.

These costs of good sold, referred to as COGS, are variable costs that change as the number of units produced changes. These costs include such things as labor and materials.

Fixed costs, on the other hand, do not change with units produced. Examples are rent, utilities and property insurance.











How to Calculate Gross Margin



Determine the following two things:

Simple Gross Margin Formula Cheatsheet



To calculate gross margin percent:

  • (Revenue – variable cost per unit)/revenue = gross margin percentage











  •  Our Partner Promise

    Quest Technology Group
    315 E. Robinson Street • Suite 525
    Orlando, FL 32801
    Phone: 407 . 843 . 6603

           

    © 1991-2022 Quest Technology Group, LLC All rights reserved. Your Privacy Matters