How profit margin is calculated
Profit margin shows how much of your selling price remains as profit after the cost of a product or service is deducted. It is expressed as a percentage of the selling price.
Profit formula
Profit margin formula
Markup formula
Example
If a product costs SAR 700 and sells for SAR 1,000, the profit is SAR 300. The profit margin is 30%, while the markup on cost is approximately 42.86%.