Gross Margin

This is a `metric-based` term. One of the many marketing and sales metrics businesses use to assess the outcome of their efforts.

If a company's total revenue is $100,000 and its COGS is $40,000, the gross margin would be 60% ($100,000 - $40,000 = $60,000; $60,000 / $100,000 = 0.6 or 60%).

Example:

If a company's total revenue is $100,000 and its COGS is $40,000, the gross margin would be 60% ($100,000 - $40,000 = $60,000; $60,000 / $100,000 = 0.6 or 60%).

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