SaaS unit economics · Profitability

SaaS Gross Margin Calculator

Separate revenue from direct delivery costs to measure gross profit, gross margin and the gap to your target margin.

Monthly revenue and COGS

CurrencySubscription revenueServices revenueHosting & infrastructurePayment processing feesCustomer support COGSServices delivery costsOther direct COGSTarget gross margin (%)

Margin results

Total revenue—

Total COGS—

Gross profit—

Gross margin—

COGS as % of revenue—

Annualized gross profit—

Maximum COGS at target—

COGS reduction needed—

Revenue needed at current COGS—

What belongs in SaaS COGS?

Gross margin is (Revenue − COGS) ÷ Revenue × 100. Direct costs commonly include hosting, payment fees, customer support and implementation or services delivery. Sales, marketing, product development and general administration are normally operating expenses rather than COGS.