What is the difference between profit margin , gross margin , and revenue ?
In: 135
There are a lot of very good answers but everyone is missing a key detail:
Margin is a percentage, not a dollar amount. Revenue minus product costs does NOT give you your gross margin. It gives you your gross profit. To find your gross margin you must divide gross profit into revenue and multiply by 100 to result a percentage that is your gross margin.
Same thing with profit margin. Calculate your net profit like other folks have said by taking revenue minus all costs to run the business, then divide that result into revenue.
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