
What Is Gross Margin? Definition, Formula, and Industry Benchmarks
Gross margin is the percentage of revenue a company retains after subtracting direct costs. Learn the formula, industry benchmarks, and how SaaS founders can improve it.
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Tomas is Growth Manager at Rewardful, affiliate software for SaaS and AI companies, and builds a portfolio of monetized digital products at Craftled. He writes about turning pricing decisions into predictable revenue from the perspective of someone actively building and selling software.

Gross margin is the percentage of revenue a company retains after subtracting direct costs. Learn the formula, industry benchmarks, and how SaaS founders can improve it.

The latest SaaS churn rate benchmarks for 2026: average rates by industry vertical, company stage, ARR band, pricing model, and customer segment. 68 data points with citations.