Return on Sales (Operating Margin) Calculator

LAST UPDATE: September 25th, 2020


Definition – What is Return on Sales?

Return on Sales is a ratio of operating profit to sales. It is listed as a percentage.

Formula – How to calculate Return on Sales

Return on Sales = (Operating Profit / Net Sales) x 100%


A business has operating profit of $7,000 and net sales of $14,000.

Return on Sales = ($7,000 / $14,000) x 100% = 0.500 x 100% = 50.00%

Therefore, this company has a return on sales of 50.00%

Sources and more resources