Operating Margin Calculator
Enter revenue and operating income (EBIT) to calculate operating margin.
Operating Margin Calculator
Calculate operating margin — the percentage of revenue remaining after operating expenses, before interest and taxes.
This calculator provides an estimate for general informational purposes only. It is not a substitute for professional financial, mechanical or engineering advice.
Operating margin measures core business profitability before interest and taxes are applied, making it useful for comparing operational efficiency across companies with different debt or tax situations.
Example
- With the default values shown above, this calculator returns: Operating Margin ≈ 18.00.
Frequently Asked Questions
What is the formula?
Operating Margin % = Operating Income ÷ Revenue × 100, where Operating Income (EBIT) is revenue minus operating expenses like COGS, wages and rent, but before interest and tax.
Why look at operating margin instead of net margin?
Operating margin isolates how efficiently the core business runs, excluding financing decisions (interest) and tax effects that can vary for reasons unrelated to operations.