Finance · Calculator

Gross Margin Calculator — Gross Margin

Gross margin is the share of revenue left after paying for the product itself (COGS) — your profit margin before ads, staff and overheads. It is what an ecommerce profit calculator actually answers for your store.

Formula

The formula

Gross Margin = (Revenue − COGS) ÷ Revenue × 100
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Gross Margin (%)
Why it matters

What it means for your business

Margin is the bankroll for everything else. Break-even ROAS and LTV math both start from gross margin.

For agents

Machine-readable markdown

Copy this block into any AI assistant, spreadsheet, or automation — it is the canonical definition of this term.

# Gross Margin — Gross Margin **Category:** Finance **Slug:** /glossary/gross-margin/ ## Definition (easy to understand) Gross margin is the share of revenue left after paying for the product itself (COGS) — your profit margin before ads, staff and overheads. It is what an ecommerce profit calculator actually answers for your store. ## Formula “` Gross Margin = (Revenue − COGS) ÷ Revenue × 100 “` ## What it means for your business Margin is the bankroll for everything else. Break-even ROAS and LTV math both start from gross margin. ## Source Socialee eCommerce Glossary — https://ecommerce.socialee.in/glossary/
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