Finance CalculatorsBusiness FinanceFree Tool
Operating Margin Calculator
Calculate your operating margin - operating income (EBIT) divided by revenue - using an EBIT figure you provide directly.
How to Use Operating Margin Calculator
- 1Enter your revenue
- 2Enter your operating income (EBIT)
- 3Click Calculate to see your operating margin percentage
Frequently Asked Questions
Operating Margin = Operating Income (EBIT) divided by Revenue times 100. You enter your EBIT figure directly - this calculator doesn't derive EBIT from revenue, COGS, and opex itself (use the EBIT Calculator for that).
This calculator notes rough industry ranges: software 20-30%, manufacturing 8-15%, retail 3-8% - but treat these as general context, not a target that applies to every business in those sectors.
Gross Margin only subtracts COGS from revenue. Operating Margin uses your operating income (EBIT) figure, which already has both COGS and operating expenses deducted, so it's a narrower profitability measure.
Use your own income statement, or calculate it first with the EBIT Calculator on this site (Revenue minus COGS minus Operating Expenses).
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