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Profit Margin Formula

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Profit Margin is a measure of profitability. Check FAQs

PM = (\frac{GP}{SP}) \cdot 100

PM - Profit Margin?GP - Gross Profit?SP - Selling Price?

Profit Margin Example

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Here is how the Profit Margin equation looks like with Values.

Here is how the Profit Margin equation looks like with Units.

Here is how the Profit Margin equation looks like.

85.9599 = (\frac{7500}{8725}) \cdot 100

85.9599 = (\frac{7500}{8725}) \cdot 100

85.9599 = (\frac{7500}{8725}) \cdot 100

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Profit Margin Solution

Follow our step by step solution on how to calculate Profit Margin?

FIRST Step Consider the formula

PM = (\frac{GP}{SP}) \cdot 100

Next Step Substitute values of Variables

∴

PM = (\frac{7500}{8725}) \cdot 100

Next Step Prepare to Evaluate

∴

PM = (\frac{7500}{8725}) \cdot 100

Next Step Evaluate

∴

PM = 85.9598853868195

LAST Step Rounding Answer

∴

PM = 85.9599

Profit Margin Formula Elements

Variables

Profit Margin

Profit Margin is a measure of profitability.

Symbol: PM

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Profit Margin

Gross Profit

Gross Profit is the profit a company makes after deducting the costs associated with making and selling its products.

Symbol: GP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Gross Profit

Selling Price

The Selling Price indicates the price associated with the selling of the products.

Symbol: SP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Selling Price

Other formulas in Retail Sales Mark Up category

Go Markup Markdown Percentage

MU MD % = (\frac{GP}{C}) \cdot 100

Go Gross Profit

GP = SP - C

How to Evaluate Profit Margin?

Profit Margin evaluator uses Profit Margin = (Gross Profit/Selling Price)*100 to evaluate the Profit Margin, Profit Margin is a measure of profitability, expressed as the percentage of revenue that the company keeps as profit. Profit Margin is denoted by PM symbol.

How to evaluate Profit Margin using this online evaluator? To use this online evaluator for Profit Margin, enter Gross Profit (GP) & Selling Price (SP) and hit the calculate button.

FAQs on Profit Margin

What is the formula to find Profit Margin?

The formula of Profit Margin is expressed as Profit Margin = (Gross Profit/Selling Price)*100. Here is an example- 85.95989 = (7500/8725)*100.

How to calculate Profit Margin?

With Gross Profit (GP) & Selling Price (SP) we can find Profit Margin using the formula - Profit Margin = (Gross Profit/Selling Price)*100.

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Profit Margin Formula

Profit Margin Example

Profit Margin Solution

Profit Margin Formula Elements

Other formulas in Retail Sales Mark Up category

How to Evaluate Profit Margin?

FAQs on Profit Margin

Variable Name