Gross Margin Impact Calculator
Strip infrastructure and support cost out of recurring revenue.
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Support headcount, onboarding, hosting ops.Gross profit
$3,950,000
Revenue − COGS
Gross margin
79.0%
The valuation-driving number
Total COGS
$1,050,000
Infra + support
COGS as % of revenue
21.0%
Lower is better
79% is acceptable but below best-in-class SaaS (80%+). Infra efficiency and reducing high-touch support are the usual levers to close the gap.
Gross margin caps your valuation multiple: a services-heavy 60% SaaS trades far below an 85% one at identical growth. Watch infra and support as you scale.
About this calculator
Deduct cloud infrastructure and support cost from recurring revenue to reveal true gross margin — the number that quietly caps your valuation multiple.
Everything runs in your browser — nothing you type is sent anywhere or stored. Use it to sanity-check a plan, pressure-test a channel, or brief a team before you commit budget.