What is margin?
Gross margin is the share of the selling price left after the cost of the product or service.
Margin decides how much you can spend to win an order. It is the most important input for ad profitability.
Always calculate margin from prices without VAT and include costs you pay per order, like shipping.
Formula
Margin = (price - cost) / price x 100
Example
You sell for 100 EUR without VAT and buy for 60 EUR. Margin is 40 %.