If it costs you $10 to produce or buy a pair of shoes, and you sell them for $20, then your margin is $10.
What is a margin? Definition and meaning
The word ‘margin’ has several meanings, both in the world of business and finance, as well as other situations. It can refer to the difference between the cost of a product and how much you sell it for. It can also mean the amount by which revenue from total sales exceeds costs in a business.
In non-business/finance English, it may refer to the blank space around the text on a page, the amount allowed beyond what is necessary, as in “We need to allow for a margin of error,” or a border/edge. In the phrase “The margin of sanity,” it means a limit in capacity, beyond which something deteriorates or ceases to exist.
The verb ‘to margin’ means: 1. To provide an edge or border, usually around a text. 2. To deposit money with a broker as security. 3. To annotate or summarize a text in the margins.