Editing Profit margin (section)

== Profit percentage ==
On the other hand, '''profit percentage''' is calculated with cost taken as base:
<math display="block">\text{Profit Percentage} = {100 \cdot \text{Net Profit}\over\text{Cost}}</math>

Suppose that something is bought for $40 and sold for $100.
:{{math|1=Cost = $40}}
:{{math|1=Revenue = $100}}
:<math>\text{Profit} = \$100 - \$40 = \$60</math>
:<math>\text{Profit percentage} = \frac{100 \times \$60} {\$40} = 150\%</math>
:<math>\text{Profit margin} = \frac{100 \times (\$100 - \$40)} {\$100} = 60\%</math>
:<math>\text{Return on investment multiple} = \frac{\$60} {\$40} = 1.5</math> (profit divided by cost).

If the revenue is the same as the cost, profit percentage is 0%. The result above or below 100% can be calculated as the percentage of return on investment. In this example, the return on investment is a multiple of 1.5 of the investment, corresponding to a 150% gain.<ref>[https://calculator-online.info/percentage-calculator Subtract percentage calculator]</ref>