How to measure Gross Margin

The percentage of revenue left after the direct cost of delivering the service (hosting, support, payment fees, third-party APIs).

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

Why it matters: Caps how much each revenue dollar contributes to LTV and growth. Healthy SaaS runs 70–80%+; a thin margin quietly poisons LTV, payback, and every efficiency ratio downstream.

2 tools that produce Gross Margin

Side-by-side: how each tool produces this number, what to read before adopting, and where to find the official docs. Saasly does not integrate with these tools — this is a reference so you can pick the right one for your stack.

ToolCategoryHow it produces Gross MarginPricing
StripeBilling platformComputed (SQL / export)Pay-as-you-go (2.
Saasly CalculatorManual calculatorManual entryFree forever, no signup.

Per-tool: what to know before you plug it in

Stripe

Computed (SQL / export)

Billing platform

Subscription billing platform with built-in dashboards and SQL analytics (Sigma).

Before you adopt: Stripe knows revenue and its own processing fees but not your hosting, support, or third-party COGS. Compute margin by subtracting full COGS in Sigma or a spreadsheet; counting only Stripe fees overstates margin.
Pricing: Pay-as-you-go (2.9% + $0.30 per charge). Sigma analytics: free up to 1K charges/mo, then $0.02/charge.
Official docs for Gross Margin Stripe home

Saasly Calculator

Manual entry

Manual calculator

Manual-entry calculator that computes the core SaaS metrics with Skok-tier classification.

Before you adopt: Enter revenue and COGS — get gross margin percentage against the SaaS benchmark band. Include all delivery costs (hosting, support, payment fees) in COGS, not just infrastructure, for an honest number.
Pricing: Free forever, no signup.
Official docs for Gross Margin Saasly Calculator home

Already have your numbers? Run the math.

The Saasly Calculator computes Gross Margin (and 15 other SaaS metrics) from manual input — useful when you've pulled the underlying numbers out of one of the tools above and want a quick sanity check with industry benchmark percentiles.

Open the calculator

Other metrics

How to measure Customer Lifetime Value
The total gross profit a single customer is expected to generate over their entire relationship with you.
How to measure Customer Acquisition Cost
The fully-loaded cost of acquiring one paying customer in a given period.
How to measure Monthly Recurring Revenue
The normalized monthly value of every active subscription, regardless of billing period.
How to measure Customer Churn Rate
The percentage of customers who cancel in a given period. Counts logos, not dollars.
How to measure Net Revenue Retention
How much revenue a cohort of existing customers generates compared to where they started — including expansion, contraction, and churn.
How to measure CAC Payback Period
The number of months of gross profit from a customer required to recover the cost of acquiring them.
How to measure SaaS Quick Ratio
The ratio of revenue gained (new + expansion) to revenue lost (churn + contraction) in a period.
How to measure Magic Number
Annualized net-new ARR generated for each dollar of the prior quarter's sales & marketing spend.
How to measure Trial-to-Paid Conversion
The percentage of users who start a trial and become paying customers.
How to measure Net Promoter Score
A survey-based score from the 0–10 'how likely are you to recommend us?' question, taking promoters (9–10) minus detractors (0–6).
How to measure DAU/MAU Ratio
The share of monthly active users who use the product on a given day — the standard 'stickiness' measure.