Operating Margin
Free Operating Margin calculator with clear step-by-step results.
About Operating Margin
Operating margin shows profit from core operations before interest and tax.
Formula
Formula
Operating margin = operating income ÷ revenue × 100
Worked example
With the default values below, Operating Margin returns Operating Margin of 20.00%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Operating incomeminimum 0 $
- 30,000 $
- Revenueminimum 0 $
- 150,000 $
Results
- Operating Margin
- 20.00%
- Operating Income per $ of Revenue
- 0.20
- Expense Share
- 80.0%
Step by step
- 1Values used
- 2Formula
- 3Operating Margin= 20.00
- 4Operating Income per $ of Revenue= 0.20
- 5Expense Share= 80.0
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Operating margin shows profit from core operations before interest and tax.
Why does this matter?
Industry norms vary widely.