How do you calculate a profit margin?

How do you calculate a profit margin?
To calculate net profit for a venture (such as a company, division, or project), subtract all costs, including a fair share of total corporate overheads, from the gross revenues or turnover.

Net profit ($) = Sales revenue ($) - Total costs ($). This is the simplest definition of profit. Another common way of counting profit is EBITDA (Earnings Before Interest Taxes, Depreciation and Amortization). This measure of profit is valuable for two reasons. It effectively isolates operating profits and it offers investors and analysts the ability to compare the performance of business with disimilar capitalization and tax structures.