COGS
CALCULATOR
Cost of goods sold and gross margin analysis for SaaS and technology companies.
This is the percentage of revenue left after direct costs, before operating expenses like sales, marketing, and R&D are subtracted.
What this calculator does
Cost of Goods Sold (COGS) is the direct cost of producing whatever a company sells. This calculator separates COGS from operating expenses, computes gross margin, and shows gross profit — the line investors use to assess unit economics before scaling costs are layered in.
Who uses it
Founders presenting unit economics in a pitch. Investors evaluating whether a business model is viable at scale. Finance teams preparing investor-ready P&L summaries.
What to do with the output
Gross margin percentage is one of the first numbers a sophisticated investor will benchmark against sector norms. For SaaS, above 70% is expected. For hardware or food, below 40% is common. Know where you sit before entering a deal room.
Key terms
COGS: direct costs — materials, manufacturing, hosting costs directly tied to revenue, direct labour. Gross profit: revenue minus COGS. Gross margin: gross profit as a percentage of revenue. Operating expenses (OpEx): indirect costs not included in COGS — sales, marketing, G&A, R&D.
How to use this in a deal room
Your gross margin percentage determines how investors benchmark you against sector peers. In a Lengdon deal room, your P&L summary is part of the diligence checklist — COGS and gross margin appear as confirmed line items, not a slide deck approximation.
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