Finance & Interest
Basic

Profit Margin

Profit as a percentage of revenue.

Formula

Margin=ProfitRevenue×100%\text{Margin} = \frac{\text{Profit}}{\text{Revenue}} \times 100\%

Variables

ProfitNet profit
RevenueTotal sales

Example

$2000 profit on $5000 revenue is a 40% margin.

Did You Know?

Grocery stores run on razor-thin margins near 2%, while luxury brands can exceed 60%.

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