Financial Terms Glossary

Margin

Formal

Describes the profit on a sale, or the difference between the Sales Price and Cost of manufacture. Eg, Sales Price $15, Cost of Manufacture $10, then Margin = 33% being the $5 Profit divided by the $15 Sales Price. NOT the same as Mark Up (50%).

Informal

Not to be confused with Mark Up - but invariably is! It's the percentage rate of profit calculated by comparing the profit on a deal (Revenue - Cost) with the Revenue and expressing it as a percentage. Eg, Sales Price $50, Cost $25 then Margin = $25 or 50% of the Sales Price.

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