Profit Margin Formula
Expression: Profit Margin = (Revenue − Cost) / Revenue × 100
Shows what fraction of each rupee of revenue becomes profit. Gross margin uses COGS; net margin includes all expenses.
Example: Revenue ₹5 lakh, cost ₹3.5 lakh
Revenue = 500,000, Cost = 350,000
Margin = (150,000 / 500,000) × 100
Result: 30% profit margin