PROFIT MARGIN

profit margin. 1. The difference between the cost of something and the price for which it is sold. 2. The ratio, expressed as a percentage, between this difference and the selling price. • For example, a widget costing a retailer $10 and selling for $15 has a profit margin of 33% ($5 difference divided by $15 selling price). — Often shortened to margin.

[Blacks Law 8th]