Method and assumptions
Gross margin should include costs directly required to deliver the product, such as hosting, support and payment processing. Keep sales and general overhead separate.
Gross profit = revenue - cost of revenue. Gross margin = gross profit ÷ revenue.
Common questions
Should sales salaries be included?
Usually keep sales and marketing below gross profit for SaaS unit economics.
Why does target revenue exceed current revenue?
It shows the revenue needed to absorb the entered cost base at the selected margin.
Independent planning calculator. Not financial, tax, legal or investment advice.