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Business Calculators

Operating Margin Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

Operating margin

15.00%

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Operating Margin Calculator

The Operating Margin Calculator works out your operating margin in an instant. Enter operating income (ebit) and revenue and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the operating income (ebit).
  2. Enter the revenue.
  3. Read off your operating margin — the calculator updates automatically, with no button to press.

Formula

The Operating Margin Calculator uses the formula:

Operating margin = Operating income (EBIT) ÷ Revenue × 100

Worked example

For example, with operating income (ebit) of ₹300,000 and revenue of ₹2,000,000, the operating margin is 15.00%.

Inputs used
Operating income (EBIT) ₹300,000
Revenue ₹2,000,000
Results
Operating margin 15.00%

Results are estimates for educational use, not professional advice.

Frequently asked questions

Operating margin is operating income divided by revenue, shown as a percentage. With 3,00,000 operating income on 20,00,000 revenue it is 15%.

It shows how much profit a business makes from its core operations on each rupee of sales, before interest and tax.

Operating margin stops at operating profit (EBIT). Net margin goes further and subtracts interest and taxes, giving the bottom-line profitability.

It varies widely by industry. Compare a company's margin with its peers and its own past trend rather than to a single fixed benchmark.

The Operating Margin Calculator uses the formula: Operating margin = Operating income (EBIT) ÷ Revenue × 100. For example, with operating income (ebit) of ₹300,000 and revenue of ₹2,000,000, the operating margin is 15.00%.

Enter the operating income (ebit). Enter the revenue. Read off your operating margin — the calculator updates automatically, with no button to press.

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