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profit margin

American  

noun

  1. the percentage that profit constitutes of total sales.


Etymology

Origin of profit margin

First recorded in 1925–30

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

That could cut into a company’s profit margin or decrease consumer spending.

From Los Angeles Times • Jun. 23, 2026

Passing the higher cost on to consumers while maintaining its profit margin would add about $270 to the price of the next iPhone Pro model, estimates research firm TechInsights.

From The Wall Street Journal • Jun. 17, 2026

To maintain that profit margin for the iPhone 18 Pro, based on estimated costs, the company would have to charge $1,371.

From The Wall Street Journal • Jun. 17, 2026

Because it requires massive capex and the subsequent depreciation expenses—which doubled in fiscal 2026 for Oracle—AI cloud computing sales come with a lower gross profit margin than asset-light software does.

From Barron's • Jun. 12, 2026

He could undercut his competitors and increase his profit margin.

From "Atonement" by Ian McEwan

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