Finance Calculators

Operating Margin Calculator

Calculate operating margin — operating income as a percentage of revenue — from revenue, cost of goods sold and operating expenses.

Total revenue

Cost of goods sold

Operating expenses

Operating income —

Operating margin —

About the Operating Margin Calculator

Operating margin measures profitability from a business's core operations, after subtracting both the direct cost of goods sold and indirect operating expenses like rent, salaries and marketing — but before interest and taxes.

Formula: Operating Income = Revenue − COGS − Operating Expenses · Operating Margin = (Operating Income ÷ Revenue) × 100

Operating margin sits between gross margin and net margin in scope, making it a useful measure of how efficiently the core business runs before financing and tax decisions come into play.