Profit Margin Percentage = (Net Profit ÷ Revenue) × 100
Net Profit = Revenue – Total Expenses
Revenue = Total sales or income
Multiply the result by 100 to convert it to a percentage
Example: If Revenue = 1,000 and Net Profit = 200, then Profit Margin Percentage = (200 ÷ 1,000) × 100 = 20%
Gross Profit Margin Percentage = (Gross Profit ÷ Revenue) × 100
Operating Profit Margin Percentage = (Operating Profit ÷ Revenue) × 100