The formula should divide the profit by the amount of the sale, or = (C2/A2)100 to produce a percentage. In the example, the formula would calculate (17/25)100 to produce 68 percent profit margin ...

Unlike markup, margin is based on the sales price, not the cost. A 20 percent margin on an item that costs $20.00 is $25.00. This is because 20 percent of the sales price is five dollars.

For example, assume a company reports an EBITDA of $2 million and total revenue of $10 million. The EBITDA margin would be ($2 million / $10 million) × 100, resulting in a margin of 20%.