Below is an operating profit margin calculator or operating margin calculator to compute a company's operating margin using its revenue and operating profit (or operating income or income from operations). Enter a company's top line revenues and operating income to compute its operating margin
Operating Profit Margin Calculator
What is the Operating Margin?
The operating margin shows how efficiently a company turns revenue into operating income by showing margin after operating expenses and COGS (cost of goods sold). Operating expenses include everything from rent and insurance to marketing, sales, R&D, and other employee costs (except manufacturing employees, who would roll into COGS).
Operating margin is very similar to EBIT margin – for some companies, operating income and EBIT are equivalent. However, EBIT includes non-operating expenses and income, so many companies will differ in the two measures.
Operating Margin Formula
The formula for operating margin is:
Operating\ Margin=\frac{operating\ income}{revenue}Where:
- Operating Income: Operating Income, Income from Operations, or Operating Profit from the earnings statement.
- Revenue: The company's top line sales
Margin Calculators
While operating margin is a useful metric, try some of the other margin calculators:
