Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending ...

Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods. Margins can be computed from gross profit, ...

Direct cost margin shows profitability after production-related expenses. Direct costs can be variable or sometimes fixed. Gross margin varies significantly by industry. Operating profit indicates a ...

What's a good profit margin for your business? There's a quick answer to this question. A good profit margin is usually 10% or higher for most businesses, though this varies significantly by industry.