How To Find Profit Margin?

Profit margin = (Profit ÷ Revenue) × 100

Profit = Revenue − Costs

Gross profit margin = ((Revenue − Cost of Goods Sold) ÷ Revenue) × 100

Operating profit margin = ((Operating Income ÷ Revenue) × 100)

Net profit margin = ((Net Profit ÷ Revenue) × 100)

Identify total revenue

Subtract all relevant costs to get profit

Divide profit by revenue

Multiply by 100 to get percentage

Use the correct margin type for your calculation

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