Margin is the difference between the seller’s cost of the product and the selling price. A high margin means that the seller makes a lot of profit when the item is sold, a low margin means that not as much profit is made per item.
Gross Profit = Revenue – Cost
Markup Percent = (Gross Profit / Cost) x 100%
Gross Margin Percentage = (Gross Profit / Revenue) x 100%
- Business Case Analysis – Margin in Business, Finance, and Investing – A description of margin in relation to business and finance.
- Entrepreneur – Know your sales margins – An article on how to calculate and analyze sales margins.
- Investopedia – What’s a good profit margin for a new business? & Profit Margin & What is the formula for calculating profit margins? – Some articles on profit margin and how it works with business.
- Wikipedia – Profit Margin – An overview of how to calculate profit margin.