What is Profit Margin?
Profit margin is the indication of the profitability of a product, service, or business. Profit margin is expressed as a percentage; the higher the number, the more profitable the business.
Types of Profit Margins
Small businesses, including retailers, often look at two types of profit margin:

Gross profit margin
Net profit margin

What is Gross Profit Margin
Gross profit margin usually applies to a specific product or line rather than an entire business.