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← KPI Glossary
Technology & SaaS

Gross Margin

Revenue minus cost of revenue (hosting, support, onboarding) as a percentage. SaaS benchmarks target 70-80%+ gross margin.

What is Gross Margin?

Gross Margin is defined as: Revenue minus cost of revenue (hosting, support, onboarding) as a percentage. SaaS benchmarks target 70-80%+ gross margin.

What data source is used to measure Gross Margin?

Gross Margin is typically measured using data from a Accounting / ERP. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.

Typical Data SourceAccounting / ERP

Which industries track Gross Margin?

Gross Margin is a key performance indicator used across the following sectors:

  • ›Technology & SaaS

How does Firehawk Analytics measure Gross Margin?

Firehawk Analytics connects directly to your Accounting / ERP and delivers a live Gross Margin dashboard. Configuration is completed within 48 hours — no data analyst required on your team.

More metrics from Technology & SaaS

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Monthly Recurring Revenue

Predictable monthly revenue from active subscriptions. The foundational SaaS metric that all other calculations build upon.

Technology & SaaS
Billing / Subscription PlatformView →

Annual Recurring Revenue

Annualised value of recurring subscription revenue. The primary metric for SaaS valuation and investor reporting.

Technology & SaaS
Billing / Subscription PlatformView →

Churn Rate

Percentage of customers or revenue lost in a given period. Even small reductions in churn compound dramatically over time.

Technology & SaaS
Billing / CRMView →

Track Gross Margin in your business

In 48 hours, you'll have a live Gross Margin dashboard connected to your Accounting / ERP.

Browse all KPI definitions →