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Margin Formula

Margin Formula

True Profit Formula:

$$\text{True profit %}\;=\;\frac{\text{Net Income}}{\text{Revenue}}\;*\;100$$

Profit Margin formula:

$$\text{Profit Margin formula}\;=\;\frac{\text{Net Profit}}{\text{Total Revenue}}\;*\;100$$

Gross Profit Margin Formula:

$$\text{Gross Profit Margin}\;=\;\frac{\left(\text{Revenue}\;–\;\text{Cost}\right)}{\text{Revenue}}\;\;*\;100%$$

Net Profit Margin Formula:

$$\text{Net Profit Margin}\;=\;\frac{\text{PAT}}{\text{Revenue}}\;*\;100%$$