Calculate:
To calculate margin, start with your gross profit, which is the difference between revenue and COGS. Then, find the percentage of the revenue that is the gross profit. To find this, divide your gross profit by revenue. Multiply the total by 100 and voila—you have your margin percentage.
Margin = (Revenue - Cost) / Revenue
Both input values are in the relevant currency while the resulting profit margin is a percentage (gross margin percentage, e.g. 10%) arrived at after multiplying the result by 100.
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