Glossary

Profit Margin

Profit as a percentage of the selling price.

Gross profit margin is profit expressed as a percentage of the selling price, after the cost of goods. It is easy to confuse with markup, which is profit as a percentage of cost — a 50% markup is only a 33% margin. Knowing your true margin is the foundation of pricing, discounting, and ad budgets. Calculate margin and markup side by side with the profit margin calculator.

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