Gross Margin

Definition

The share of each revenue dollar remaining after direct delivery costs (COGS). The ceiling under which all other spending — marketing, R&D, G&A, profit — must fit.

Formula

Gross Margin % = (Revenue - COGS) / Revenue

Worked Example

Revenue $88,000, COGS $21,000:

Gross Profit = $88,000 - $21,000 = $67,000
Gross Margin = $67,000 / $88,000 = 76.1%

Interpretation & Pitfalls

Track gross margin per service, not just per company: a healthy blended margin can hide individual services sold below cost.

In TupicFinance

Gross margin is computed per service and per project on the dashboards, driven by service-level revenue events and COGS breakdowns.