Measure operating profit after product costs and operating expenses. Enter your own values below. The calculator shows the formula it uses, a graph and a step-by-step explanation of the result.
Also searched as: operating margin, EBIT margin
How the calculation works
Formula
Operating Profit = Revenue − COGS − Operating Expenses; Operating Margin = (Operating Profit / Revenue) × 100
Revenue less COGS and operating expenses gives operating profit. Interest expense and income tax are excluded. A zero-revenue margin is undefined.
What you enter
- Revenue / net sales
- Cost of goods sold (COGS)
- Operating expenses
- Display currency (formatting only — no exchange-rate conversion)
What the results show
- Operating profit margin
- Operating profit
- Revenue / net sales
- Cost of goods sold (COGS)
- Operating expenses
Results are estimates based only on the values and assumptions you enter. Open the detailed analysis to see the graph, the step-by-step story and the stated assumptions, and use the report menu to print, save as PDF, export a schedule to CSV or share the inputs.
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When to use this calculator
How profitable are core operations? Business owners and analysts can use it to get a quick estimate from their own figures.
Worked example
Revenue of 500,000, cost of goods sold of 300,000 and operating expenses of 120,000 leave operating profit of 80,000, a margin of 16.00%.
Illustrative figures in any currency. Enter your own values in the calculator above.