How do you calculate a 20% profit margin?

Profit Margin is the amount of profit your business is left with once all the expenses are deducted from the total revenue. To calculate profit margin 20%:

1. Divide 20 by 100 to convert into decimal form. The answer would be 0.2.
2. Deduct this 0.2 from 1 to get a figure of 0.8.
3. Take the original price of your product and divide it by 0.8.
4. Consider the answer as the price you should charge to earn a 20% profit margin.