Gross Margin Calculator
Enter revenue and COGS. Get gross profit + gross margin.
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Open BusinessOSCommon questions
What's a healthy gross margin?
Software: 70-90%. Consulting: 50-70%. Retail: 20-50%. Grocery: 15-25%. Manufacturing: 20-35%. Below industry average = something's wrong.
Gross margin vs net margin?
Gross = after COGS only. Net = after ALL costs (rent, salaries, taxes, marketing). Gross tells you unit economics, net tells you business viability.
How do I improve gross margin?
Two levers only: raise prices or reduce COGS. Price is usually easier. Raise by 5-10% and see who churns — often nobody.