Profit Margin Formula

Also known as: Net Profit Margin, Gross Profit Margin

\text{Margin} = \frac{\text{Revenue} - \text{Cost}}{\text{Revenue}} \times 100

Margin = (Revenue - Cost) / Revenue × 100

What It Calculates

Measures what percentage of revenue remains as profit after subtracting costs.

Symbol	Name	Unit	Description
Margin	Profit Margin	%	Percentage of revenue that is profit

1Margin = (100000 - 60000) / 100000 × 100 = 40%

Result: 40%

BEP = Fixed Costs / (Price - Variable Cost per Unit)

Markup = (Selling Price - Cost) / Cost × 100

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