Revenue & Financeintermediate
Margin
Profit margin
Definition
Profit shown as a percentage of revenue, so you can compare how much you keep across products or months regardless of size.
Why it matters
Margin tells you how healthy each sale is. A low margin means small cost rises or discounts can wipe out your profit, while a high margin gives you room to grow and to weather surprises.
Example
You keep £1,500 profit from £5,000 revenue, so your profit margin is 30%.
Related terms
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