Gross Margin

Definitions

1. Revenue minus direct costs, expressed as a percentage of revenue, showing how much remains before overhead and operating expenses. Gross margin is a key signal of business quality in software, commerce, and services.

   In plain English: The percentage of revenue left after direct delivery costs are removed.

   Example: "Gross margin improved once infrastructure costs stopped scaling linearly with usage."

Related Terms

• Contribution Margin
• Cost of Goods Sold
• Cost of Revenue
• Magic Number Startup
• Micro SaaS
• CAC Payback
• Operating Leverage
• Operating Margin
• Profit Margin
• Quick Ratio
• SaaS Metric
• Variable Cost
• Vertical SaaS