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Gross marginWhat it means for you.

The share of revenue left after the direct costs of delivering the product.

Growth Score · Unit Economics

Definition

What it means

Gross margin equals revenue minus cost of goods or service delivery, divided by revenue. It shows how much is left to fund growth and overhead.

Software often has high margins, but hosting and support costs still count.

In Growth Score

Part of your score

FAQ

Quick answers

What is Gross margin?

The share of revenue left after the direct costs of delivering the product.

Where does it sit in Growth Score?

It belongs to the Unit Economics pillar, one of the 12 pillars your score is built from.

What should I read next?

Start with Unit economics and Contribution margin, then browse the other terms in Unit Economics.

How does your site score?

Growth Score reads your site and scores its Unit Economics pillar against sites like yours.

Your Growth Score is 100

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