Gross Margin Calculator
Calculate your Gross Margin to understand the percentage of revenue that exceeds your cost of goods sold. This fundamental metric helps you evaluate your pricing strategy, operational efficiency, and overall business health.
Calculate Your Gross Margin
Pro Tips for Optimizing Your Gross Margin
- Track gross margin trends over time to ensure you're maintaining or improving efficiency as you scale.
- Compare gross margins across different customer segments to identify which types of customers are most profitable.
- Analyze the impact of different pricing tiers on your overall gross margin.
- Consider the trade-off between gross margin and growth - sometimes accepting lower margins is worth it for faster expansion.
- Separate software margins from service margins if you offer both, as they typically have very different economics.
- Leverage platform and infrastructure improvements to reduce costs as you scale.
- Use automation strategically to reduce labor-intensive aspects of your service delivery.