SaaS Gross Margin Calculator

About this calculator

Gross margin for a SaaS company measures how much revenue is left after subtracting the cost of goods sold (COGS) — for software, this is primarily hosting/infrastructure costs and customer support costs, rather than the manufacturing costs a physical-goods business would have. It's expressed as a percentage of revenue and is one of the most closely watched metrics in software business models, because it reveals how efficiently the underlying product itself can be delivered at scale, before accounting for sales, marketing, and R&D spend.

This calculator computes SaaS gross margin and gross profit from revenue, hosting cost, and support cost. It's a standard metric for SaaS founders, finance teams, and investors — public SaaS companies often target gross margins of 70–80%+ — used to benchmark unit economics, evaluate infrastructure efficiency, and assess a company's health during fundraising or board reporting.