Back to glossary
metrics

COGS (Cost of Goods Sold)

Direct costs to deliver your product including hosting, support, and third parties.

COGS (Cost of Goods Sold) represents the direct costs of delivering your product to customers. For SaaS, this includes hosting/infrastructure, customer support, third-party services, and payment processing. COGS directly impacts gross margin.

Formula

COGS = Hosting + Support + Third-Party Services + Payment Processing

Tips

  • Keep COGS <30% for healthy SaaS
  • Infrastructure costs should scale efficiently
  • Include all delivery-related costs

Related Terms

GROSS MARGINUNIT ECONOMICSBURN RATEREVENUEEBITDA

Calculate all your metrics automatically

CharliA generates a complete financial model with LTV, CAC, MRR, Runway and all SaaS metrics calculated automatically. In 2 hours.

Generate my financial model
cogs definition, cost of goods sold, saas cogs, cogs calculation