What is profit margin?
Financial metricSimple definition
Profit margin is the percentage of revenue you keep as profit after subtracting your costs. It tells you how much of every sale remains once expenses are covered.
Why it matters
Profit margin isn’t just a number — it’s a quick signal of business health and efficiency. Strong margins can reflect better cost control and smarter pricing, which may improve credibility with investors, lenders, and partners and help a business stay competitive.




