An analytic expression for the gain suppression coefficient of semiconductor laser in terms of carrier temperature and other material parameters is presented. The expression is derived from a density matrix formulation of gain in diode lasers based on a dynamic carrier heating model. We find that in the single mode approximation the theoretical estimate of the gain suppression coefficient is of the order 10−23 m3 in agreement with experimental values. This supports recent direct experimental demonstrations that dynamic carrier heating, rather than spectral hole burning provides the dominant contribution to nonlinear gain in semiconductor lasers.