Share:
Glossary Finance

Profit margin

Profit margin is profit as a percentage of the selling price: `(price − cost) / price`.

Last reviewed:

AdSense Placeholder
Slot: header_reference_page

In more detail

A $100 sale of an item that cost $60 has a 40% margin, but a 66.7% Markup, which is measured against cost. The margin can never reach 100%, while markup can.

Try these tools

Markup Calculator

Calculate markup and margin from any two of cost, selling price, profit, markup percentage or margin percentage.

See also

  • Glossary Markup
    Markup is the amount added to a cost to reach the selling price, expressed as a percentage of the cost: `(price − cost) / cost`.
  • Glossary Break-even point
    The break-even point is the sales volume at which total revenue equals total costs, so profit is zero.
Back to Glossary
AdSense Placeholder
Slot: footer_leaderboard