Profit Margin

Profit as a percentage of revenue

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Formula

Margin = (Revenue − Cost) ÷ Revenue × 100

Margin: Profit margin — profit (revenue minus cost) divided by revenue, as a percentage.
Revenue: The total revenue or selling price.
Cost: The total cost.
Profit: Revenue minus cost.

Margin = (Revenue − Cost) ÷ Revenue × 100. $5,000 cost on $20,000 revenue is a 75% margin.
Margin uses revenue as the denominator; ROI uses cost — so they differ for the same numbers.
Margin can never reach 100% unless cost is 0.

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