Profit Margin = (Net Profit ÷ Revenue) × 100
Net Profit = Revenue – Total Expenses
Gross Profit Margin = (Gross Profit ÷ Revenue) × 100
Gross Profit = Revenue – Cost of Goods Sold
Operating Profit Margin = (Operating Profit ÷ Revenue) × 100
Operating Profit = Revenue – Operating Expenses
Identify total revenue
Subtract all relevant costs to find profit
Divide profit by revenue
Multiply by 100 to get the percentage
Example: if revenue is 100 and net profit is 20, profit margin is 20%