Margin = (Revenue – Cost of Goods Sold) / Revenue
Gross margin = (Sales – Cost of goods sold) / Sales
Profit margin = Net profit / Revenue
Operating margin = Operating income / Revenue
Margin amount = Selling price – Cost
Margin percentage = (Margin amount / Selling price) × 100
If you know cost and markup, selling price = cost + markup
If you know selling price and margin %, cost = selling price × (1 – margin %)
If you know cost and desired margin %, selling price = cost / (1 – margin %)
Break-even margin = 0% when revenue equals total cost
Higher revenue with the same cost increases margin
Higher cost with the same revenue decreases margin