Profit margin = (Profit ÷ Revenue) × 100
Gross profit margin = (Revenue – Cost of Goods Sold) ÷ Revenue × 100
Operating profit margin = Operating Profit ÷ Revenue × 100
Net profit margin = Net Profit ÷ Revenue × 100
Find total revenue
Subtract total costs to get profit
Divide profit by revenue
Multiply by 100 to get percentage
Use gross profit for gross margin
Use operating profit for operating margin
Use net profit for net margin
Increase revenue to improve margin
Reduce costs to improve margin
Track margins regularly
Compare margins with previous periods
Compare margins with industry averages