Ecommerce & Marketplaces
Profit margin
The net profit as a share of the sale price.
The Formula
Margin = Net / Price x 100
The net profit as a share of the sale price.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| N | Net profit | currency | Profit left per order. |
| P | Sale price | currency | What the customer pays. |
What Each Symbol Means
Ncurrency
Net profit
Profit left per order.
Pcurrency
Sale price
What the customer pays.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate ecommerce profit page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Ecommerce Profit, filed under Business. Every number the guide produces comes from substituting into this one line.