Glossary › Money and tax

Margin

Profit as a share of the selling price.

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If you buy for 80 and sell for 100, you keep 20, and 20 is 20% of 100. That is a 20% margin. Margin can never reach 100%.

To work backwards from a cost and a margin to a selling price, add the margin to the cost with “+ 25% margin”.

In Ratio

You typeRatio shows
margin(80, 100)20%
80 + 25% margin106.6667

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