---
title: "What Is Profit margin? Dental Practice Glossary"
description: "Profit margin is the share of revenue left after all expenses, found by dividing profit by revenue and shown as a percentage."
url: https://joncopeland.multisites.ai/glossary/profit-margin
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Finance and valuation

# Profit margin

Profit margin is the share of revenue left after all expenses, found by dividing profit by revenue and shown as a percentage.

The SBA's glossary gives the basic profit formula: revenues minus expenses equals net income or loss. Profit margin then divides that result by revenue, so a practice that keeps 20 dollars of profit from each 100 dollars of revenue has a 20 percent margin. The SBA glossary also defines gross profit margin as gross profit divided by net sales, the share of each sales dollar left after paying for the product. In a dental practice the margin depends on how the owner's own pay is counted, which is why two practices may not compare fairly. See [owner compensation](https://joncopeland.multisites.ai/glossary/owner-compensation) and [practice profitability](https://joncopeland.multisites.ai/glossary/practice-profitability). The [profit and loss statement](https://joncopeland.multisites.ai/glossary/profit-and-loss-statement) is where the figures come from.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Practice profitability](https://joncopeland.multisites.ai/glossary/practice-profitability)
-   [Owner compensation](https://joncopeland.multisites.ai/glossary/owner-compensation)
-   [Profit and loss statement](https://joncopeland.multisites.ai/glossary/profit-and-loss-statement)
-   [Overhead percentage](https://joncopeland.multisites.ai/glossary/overhead-percentage)

## Sources

1.  [SBA, Glossary of Business Financial Terms](https://www.sba.gov/document/support--glossary-business-financial-terms)
2.  [SBA, Glossary of Business Financial Terms](https://www.sba.gov/document/support--glossary-business-financial-terms)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)