profit margin
noun
: the difference between the cost of buying or making something and the price at which it is sold
The company has one of the highest/lowest profit margins in the industry.
Examples of profit margin in a Sentence
Recent Examples on the Web
But, because gas is among its lowest-margin products, the company’s overall profit margin gets squeezed.
—
David Goldman, CNN Money, 31 May 2026
According to documents reviewed by the Times, the company charged a 20 percent profit margin on the project, well above the 6 to 12 percent range that National Park Service officials considered typical for similar federal construction contracts.
—Daniel Cassady, ARTnews.com, 28 May 2026
The analysis found that the typical profit margin of federal construction contracts of a similar nature is around 6 percent to 12 percent, The New York Times reported.
—Adam England, PEOPLE, 28 May 2026
The National Restaurant Association reports that a typical restaurant operates on a 3 to 5 percent profit margin, and after food and labor, credit card transactions are the third-largest operating expense.
—Connie Ogle
updated May 27, Miami Herald, 27 May 2026
See All Example Sentences for profit margin
Examples are automatically compiled from online sources to
show current usage.
Read More
Opinions expressed in the examples do not represent those of Merriam-Webster or its editors.
Send us feedback.
David Goldman, CNN Money, 31 May 2026
According to documents reviewed by the Times, the company charged a 20 percent profit margin on the project, well above the 6 to 12 percent range that National Park Service officials considered typical for similar federal construction contracts.
—Daniel Cassady, ARTnews.com, 28 May 2026
The analysis found that the typical profit margin of federal construction contracts of a similar nature is around 6 percent to 12 percent, The New York Times reported.
—Adam England, PEOPLE, 28 May 2026
The National Restaurant Association reports that a typical restaurant operates on a 3 to 5 percent profit margin, and after food and labor, credit card transactions are the third-largest operating expense.
—Connie Ogle
updated May 27, Miami Herald, 27 May 2026
See All Example Sentences for profit margin
Cite this Entry
“Profit margin.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/profit%20margin. Accessed 7 Jun. 2026.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
