How to Figure Percent in Profit Margins for a Month
When companies make sales, they charge a higher price for the goods than they paid for them to cover their costs and make a profit. The percentage of the sales price that equals profit is called the profit margin. The greater the profit margin, the more profit the seller makes per sale. Your profit margin may vary from month to month based on market conditions. To find the profit margin, you need to know your sales and the cost of the items you sold.
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Instructions
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Subtract your cost of goods sold for the month from your total sales for the month to find your monthly profit. For example, if you sell $7,000 of goods and those goods cost you $4,700, subtract $4,700 from $7,000 to find your profit equals $2,300.
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Divide your monthly profit by your monthly sales to find your profit margin reported as a rate. In this example, divide $2,300 by $7,000 to get 0.3286.
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Multiply the monthly profit margin rate by 100 to find the monthly profit margin as a percent. Finishing this example, multiply 0.3286 by 100 to find your profit margin for the month equals 32.86 percent.
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