← Business Dictionary
Finance

Gross Margin

The share of each sale left over after the direct cost of making it — before overheads. Higher margins give you more room to grow.

Example

Selling for ₹800 with ₹300 COGS is a 62.5% gross margin.

Formula

Gross Margin = (Revenue − COGS) ÷ Revenue × 100

Related terms

Building a startup?

Base 91 Hub takes founders from idea to launch — tracker, community, AI toolkit and this dictionary, built in.

Create your account