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Gross Margin for SaaS: What It Is, Benchmarks, and How to Improve It

Category: SaaS Metrics · Published: 2026-04-17

Gross Margin is the percentage of revenue remaining after deducting direct product delivery costs (COGS). Top-performing SaaS companies achieve 75-85% gross margins. Learn what belongs in SaaS COGS, why gross margin drives valuation multiples and LTV, and the highest-leverage ways to improve it.

Topics covered

  • gross margin saas
  • saas gross margin
  • cogs saas
  • gross profit margin
  • saas unit economics