How to Calculate Profit Margin
Profit margin is a measure of profitability. It's calculated by finding the net profit as a percentage of the revenue.
The Formula
Profit Margin = (Net Profit / Revenue) × 100
Example
If you sell a product for $100 and it costs you $40 to make, with $10 in shipping and $5 in fees, your total cost is $55. Your net profit is $45. Your profit margin is ($45 / $100) × 100 = 45%.