# Is Margin Gross profit?

**Gross profit margin**is calculated by subtracting cost of goods sold (COGS) from total

**revenue**and dividing that number by total

**revenue**. The top number in the equation, known as

**gross profit**or

**gross margin**, is the total

**revenue**minus the direct costs of producing that good or service.

Similarly, it is asked, is profit margin the same as gross margin?

**Gross profit margin** is the **gross profit** divided by total revenue, multiplied by 100, to generate a percentage of income retained as **profit** after accounting for the cost of goods. Net **profit margin** or net **margin** is the percentage of net income generated from a company's revenue.

Subsequently, question is, what is a good gross profit margin? ” A **good margin** will vary considerably by industry, but as a general rule of thumb, a 10% net **profit margin** is considered average, a 20% **margin** is considered high (or “**good**”), and a 5% **margin** is low.

Similarly, does margin mean profit?

The **profit margin** is a ratio of a company's **profit** (sales minus all expenses) divided by its **revenue**. The **profit margin** ratio compares **profit** to sales and tells you how well the company is handling its finances overall. It's always expressed as a percentage.

What is profit margin percentage?

**Profit margin** is calculated with selling price (or revenue) taken as base times 100. It is the **percentage** of selling price that is turned into **profit**, whereas "**profit percentage**" or "markup" is the **percentage** of cost price that one gets as **profit** on top of cost price.