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Operating Margin Calculator

LAST UPDATE: September 1st, 2018

Calculator

What is Operating Margin?

Operating Margin is a measurement of a firm’s profitability.

Formula

Operating Margin = (Operating Income / Sales Revenue) x 100%

Example

A business has operating income of $3,500 and sales revenue of $18,000.

Operating Margin = ($3,500 / $18,000) x 100% = 0.1944 x 100% = 19.44%

Therefore, this company’s operating margin is 19.44%.

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