The profit percentage formula is a calculation that determines the percentage of profit made on each sale. It is calculated by taking the profit made on a sale and dividing it by the revenue earned, then multiplying the result by 100 . Profit percentage is a key indicator of a business's efficiency. It measures how much of your revenue turns into actual profit after deducting all costs. It helps in evaluating: Profit Percentage = (Profit / Cost Price) x 100. Anjali, a 27-year-old from Pune, started a handmade journal business. Profit percentage is similar to markup percentage when you calculate gross margin. This is the percentage of the cost that you get as profit on top of the cost. Profit Percentage = Net Profit / Cost . Revenue = Selling Price. Using the formula for profit percentage, Profit % = (Profit / C.P.) × 100 . So, the profit percentage of the shopkeeper will be (25 / 20) × 100 = 1.25 × 100 = 125%. It can be said that the shopkeeper made a profit of Rs. 25 from each watch with a profit percentage of 125%.
