Profit margin

Accounting.

A measure of the surplus of revenues over relevant costs, often expressed as a percentage of revenues.

Example

Revenues = 100

Costs = 70

Then the surplus (profit):

= 100 - 70

= 30.

And the profit margin:

= 30 / 100

= 30%.

See also

• Gross profit margin
• Margin
• Margin on costs
• Net profit margin
• Operating profit margin
• Profit
• Profitability
• Return on sales