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Operating Margin Calculator

Find operating margin from operating income and revenue.

Parameters Live Compute
Calculated Output
Operating margin (%) 18
Formula: operating margin = operating income ÷ revenue × 100
Step-by-Step Breakdown
1. Values used:
2. Operating income = 18,000 $
3. Revenue = 100,000 $
4.
5. Operating margin = 18%
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Operating margin measures profit from core operations (before interest and tax).

The math behind it

operating margin = operating income (EBIT) ÷ revenue × 100.

Worked Example

$18k EBIT on $100k → 18%.

Frequently Asked Questions

EBIT?

Earnings before interest and taxes — the same as operating income.

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