What this calculator does
Operating margin works out what share of revenue is left as operating profit, after cost of sales and running costs. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaOperating income = Revenue − COGS − Operating expenses; Operating margin = Operating income / Revenue
The inputs explained
| Field | What to enter |
|---|---|
| Revenue ($) | A number, measured in your currency. Starts at 1000000. |
| Cost of goods sold ($) | A number, measured in your currency. Starts at 600000. |
| Operating expenses (SG&A etc.) ($) | A number, measured in your currency. Starts at 250000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with revenue
Every other input is held at the calculator’s starting values while revenue varies. Select any row to load that scenario into the calculator.