What is profit margin?▼
Profit margin is the percentage of revenue that remains as profit after costs. A 40% margin means ₹40 profit for every ₹100 in sales.
What's the difference between margin and markup?▼
Margin is profit as a % of selling price. Markup is profit as a % of cost price. E.g., buying at ₹100 and selling at ₹150: margin = 33.3%, markup = 50%.
What is a good profit margin?▼
It varies by industry. Retail: 2-5% net margin. SaaS: 20-30%. Services: 10-20%. Manufacturing: 5-10%. Higher is better but depends on volume.
What are gross, operating, and net margins?▼
Gross margin = Revenue minus COGS. Operating margin subtracts operating expenses. Net margin subtracts all expenses including taxes and interest.