What is the formula for Cloud cost of revenue?

Share = cloud cost of revenue ÷ revenue. Gross margin = (revenue − cost of revenue) ÷ revenue Only production cloud cost in cost of revenue

Is the Cloud cost of revenue calculator free to use?

Yes. It is part of VVnT SeQuor's free, no-login Engineering Metrics Workbench. Calculations run in your browser.

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See cloud cost as a share of revenue and its effect on gross margin.

Cloud & FinOps

Share = cloud cost of revenue ÷ revenue. Gross margin = (revenue − cost of revenue) ÷ revenue
Only production cloud cost in cost of revenue

NoteTrack this alongside unit cost: a falling share with growing revenue is healthy.

Source: FinOps Foundation (unit economics); SaaS gross margin practice

VVnT SeQuor's Strategic IT & Architecture Advisory practice helps teams turn this metric into a plan.