Operating Margin Calculator
Calculate operating margin from revenue and operating income.
How this calculator works
How to use this calculator
Enter total revenue and operating income for the same period. The calculator converts operating income into a percentage of revenue.
Formula used
Operating Margin = Operating Income ÷ Total Revenue × 100
Example calculation
Revenue = $120,000 and operating income = $30,000. Operating Margin = 25.00%.
What the result means
Operating margin shows how much revenue remains after operating costs, before interest and taxes. It helps measure core business efficiency.
Frequently asked questions
What is operating income?
Operating income is profit from core business operations before interest and taxes.
Is operating margin the same as net margin?
No. Operating margin excludes interest and taxes, while net margin includes all expenses.
Can operating margin be negative?
Yes. A negative operating margin means operating expenses are higher than revenue.
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