Ecommerce & Marketplaces
Profit margin
Expresses the net profit as a share of the selling price.
The Formula
Margin = Net / Price x 100
Expresses the net profit as a share of the selling price.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| N | Net profit | currency | Profit left per unit. |
| P | Selling price | currency | What the buyer pays per unit. |
What Each Symbol Means
Ncurrency
Net profit
Profit left per unit.
Pcurrency
Selling price
What the buyer pays per unit.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate amazon 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 Amazon Profit, filed under Business. Every number the guide produces comes from substituting into this one line.