Profit Margin Percentage = (Net Profit ÷ Revenue) × 100
Net Profit = Revenue – Total Expenses
Revenue = Total Sales or Income
Gross Profit Margin Percentage = (Gross Profit ÷ Revenue) × 100
Gross Profit = Revenue – Cost of Goods Sold
Operating Profit Margin Percentage = (Operating Profit ÷ Revenue) × 100
Operating Profit = Gross Profit – Operating Expenses
Example: If Revenue is 1,000 and Net Profit is 200, Profit Margin Percentage = (200 ÷ 1,000) × 100 = 20%
Use the same formula with gross profit or operating profit if you need those margin types