What is operating margin?
Operating margin measures the percentage of revenue left after paying for the direct and everyday operating costs of running a business, such as cost of goods sold and operating expenses — but before interest and taxes.
How this calculator works
Enter your total revenue and operating income (also called EBIT, or earnings before interest and taxes). Operating margin is calculated by dividing operating income by revenue and multiplying by 100.
Operating margin is useful for comparing the core operational efficiency of businesses regardless of how they’re financed or taxed. This tool is for general business planning purposes.
Last reviewed August 2026