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
