Business & Accounting
Gross Margin
Definition
The percentage of revenue remaining after subtracting the direct costs of producing the goods or services sold. Calculated as (Revenue minus Cost of Goods Sold) divided by Revenue, multiplied by 100. A business with $100,000 in revenue and $40,000 in COGS has a 60% gross margin. Gross margin does not include operating expenses like rent, marketing, or salaries. It tells you how efficiently you produce or deliver your product. Service-based freelancers typically have very high gross margins (80-95%) because their primary cost is time.
Related Templates
These SheetCraft templates use or relate to Gross Margin:
- Small Business Bookkeeping System, Simple bookkeeping for small business owners who don't have an accountant, income, expenses, P&L, sales tax, and bank reconciliation.
- Reseller Business Toolkit, Track inventory, listings, sales, and profit per item across eBay, Poshmark, Mercari, and more.