Gross Margin
Planning & BudgetingRevenue minus cost of goods sold divided by revenue, showing the percentage of revenue retained after direct costs.
Example
Example: For someone earning $60,000/year trying to build a solid financial plan, understanding gross margin is a key piece of the puzzle. Applied to a monthly budget, this concept could help you save an extra $200-$500/month. Build your plan with our 50/30/20 budget calculator.