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
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.
Rivian's gross profit totaled $176 million while total gross profit margin widened to 8%. — Paulina Likos, CNBC, 30 Oct. 2026 Rivian brought in $256 million in profit in software and services, up $102 million from last year, with a strong 42 percent profit margin. — Andrew J. Hawkins, The Verge, 29 Oct. 2026 In that structure, every hour of human labor ceases to be a revenue stream and becomes a direct cost against the provider’s profit margin. — Nick Lichtenberg, Fortune, 27 Oct. 2026 Plus, at a quarter, (as compared to $2 to $4 for hardcovers), the profit margin was a slim one; to make money, the print run typically had to exceed 100,000 or 150,000 copies and sales had to be robust. — Literary Hub, 8 Oct. 2026 See All Example Sentences for profit margin

Browse Nearby Words

Cite this Entry

“Profit margin.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/profit%20margin. Accessed 1 Nov. 2026.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

More from Merriam-Webster