Finance
Gross margin
Gross margin is revenue minus cost of goods sold, expressed as a percentage of revenue. It measures how much of each sale is available to cover operating expenses and profit, and is the primary indicator of whether a product is fundamentally viable.
In plain terms: The share of each sale left after paying for the thing you sold.
Why it matters
Meaningful only if COGS is complete. A margin calculated from supplier invoices while ignoring freight, duties and payment fees is not a margin, it is an aspiration.
Read the full guideBookkeeping