Average Profit Margin

What is Average Profit Margin?

Expressed as a percentage, is your business’s profit margin over the long term, usually an average of several years of business activity.

How to Calculate Average Profit Margin?

To find the margin, simply divide gross profit by the revenue.

To make the margin a percentage, multiply the result by 100. The margin is 25%. That means you keep 25% of your total revenue.

Average Profit Margin = Gross Profit / Revenue

To Convert The Whole Number into a Percentage = Average Profit Margin x 100, then put the percentage sign.