# Gross margin

Concept · [Business and metrics](https://ecosystem.samcarlton.com/business)

Also called: margin, margins, gross profit

The part of each sale you keep after paying the direct cost of making and delivering what you sold.

**For example:** You sell a candle for 20 dollars. It costs 8 dollars to make and ship. You keep 12 dollars, a gross margin of 60 percent.

## Connects to (5)

- [Revenue](https://ecosystem.samcarlton.com/revenue): All the money customers pay your business, before any costs are taken out.
- [Profit](https://ecosystem.samcarlton.com/profit): What is left of your revenue after every cost is paid.
- [Unit economics](https://ecosystem.samcarlton.com/unit-economics): Whether you make or lose money on one customer or one sale, once you count what it cost to win and serve them.
- [EBITDA](https://ecosystem.samcarlton.com/ebitda): Earnings before interest, taxes, depreciation and amortization.
- [Bill of materials](https://ecosystem.samcarlton.com/bill-of-materials): A complete list of the parts, materials and quantities needed to build a product.

Map view: https://ecosystem.samcarlton.com/gross-margin