Operating Margin Calculator

Calculate the operating margin of a business by entering its operating income and total revenue.

Input Parameters

Calculation Results

Operating Margin

$0.00

Calculation Formula

Operating Margin = (Operating Income / Total Revenue) * 100%

Where:
Operating Income: The profit generated from a company's core business operations, excluding taxes and interest.
Total Revenue: The total amount of income generated by the sale of goods or services related to the company's primary operations.

Operating Margin Calculator Usage Guide

Learn how to use the Operating Margin Calculator and its working principles

How to Use the Operating Margin Calculator

  1. Enter the operating income of the business in the "Operating Income" field.
  2. Enter the total revenue of the business in the "Total Revenue" field.
  3. Click the "Calculate" button to compute the operating margin.
  4. The result will be displayed as a percentage in the "Operating Margin" field.

Understanding Operating Margin

Operating margin is a financial metric that measures the proportion of revenue that remains after covering the costs of doing business. It indicates how efficiently a company is operating and how well it is controlling its costs.

The formula for calculating operating margin is:

Operating Margin = (Operating Income / Total Revenue) * 100%

For example, if a company has an operating income of $50,000 and a total revenue of $250,000, the operating margin would be:

Operating Margin = ($50,000 / $250,000) * 100% = 20%

This means that 20% of the company's revenue is left after covering its operating expenses.