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Money

What is Gross margin?

What is left from a sale after the cost of delivering it. It sets the ceiling on everything else the business can afford.

Money

The definition

Revenue minus the direct cost of delivering it, shown as a percentage of revenue.

An example

$50 revenue less $20 COGS is $30, a 60% gross margin.

Where it comes up

This shows up in the product pricing calculator on this site.

Related

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Questions people ask

What is Gross margin?

Revenue minus the direct cost of delivering it, shown as a percentage of revenue. What is left from a sale after the cost of delivering it. It sets the ceiling on everything else the business can afford.