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Gross Margin Calculator
Price minus variable cost per unit = gross margin. Where the business actually makes money before fixed costs.
Free · no signup required · runs entirely in your browser
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Variable COGS = costs that scale directly with each unit sold (manufacturing, hosting, payment processing, customer-specific support). Fixed costs (salaries, rent, marketing) belong below gross margin.
Gross profit per unit$75.00
Gross margin75.0%
Total revenue$100,000
Total gross profit$75,000
Verdict
SaaS-grade margins
Above 70% gross margin is the SaaS / digital ideal. Most growth investment is justified at this level; pricing power is real.