Operating Margin Calculator

Business Calculator

Operating Margin Calculator

Calculate operating margin from revenue and operating income.

Calculator guide

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.