Total COGS

Metric Name

Total COGS

Metric Family

Income Statement

Metric Definition

Total direct costs incurred in delivering the SaaS product or service.

Formula

Total COGS = E(Hosting and Infrastructure Costs + Third-Party Software Licenses + Customer Support Costs + Payment and Processing Fees + Professional Service Costs + Other Direct Costs)

Application

Provides insights into the cost structure of a company and potential profitability. Lower COGS relative to revenue indicates a more efficient and potentially more profitable company.