technology-strategy-marketing-for-profitable-growth • Business and Technology in Plain English
• Since 1991

Free business financial calculators to measure and manage your profitable growth



Financial terms and math don't have to be a mystery



Business Essentials
Breakeven
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












  •     

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

     Our Partner Promise

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