Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago on . Most recent reply

User Stats

17
Posts
6
Votes
Winnie Rim
  • Flipper/Rehabber
  • Tacoma, WA
6
Votes |
17
Posts

Meaning of the word "Margin"

Winnie Rim
  • Flipper/Rehabber
  • Tacoma, WA
Posted

Can someone please explain fo me in depth what the word "Margin" means in buisness? And how to calculate it.

I see explanations on Google but they're all different, not sure which one refers to the correct definition in using Margins in real estate investing calculations.

Most Popular Reply

Account Closed
  • Specialist
  • Paradise Valley, AZ
2,935
Votes |
3,447
Posts
Account Closed
  • Specialist
  • Paradise Valley, AZ
Replied
Originally posted by @Winnie Rim:

Can someone please explain fo me in depth what the word "Margin" means in buisness? And how to calculate it.

I see explanations on Google but they're all different, not sure which one refers to the correct definition in using Margins in real estate investing calculations.

It's simply the markup without regard to cost of sales. So, if you buy a candy bar for $1.00 and sell it for $1.25 you have a margin of 25%. From your margin you subtract costs to arrive at your profit.

To me, the more important question is how much do I wind up with in my pocket after everything is said and done. 

Loading replies...