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Operating Margin Calculator — result sheet
Calculate operating income and operating margin after cost of goods sold and entered operating expenses.
Inputs used
Results
Visual chart
Breakdown
Calculation steps
Returned data table
Formula and methodology
Formula: Operating income = revenue − cost of goods sold − operating expenses; operating margin = operating income ÷ revenue × 100.
Operating margin shows how much of revenue remains after direct costs and the operating expenses entered by the visitor. Keeping gross profit, operating income, and revenue visible helps users distinguish this ratio from gross margin, EBITDA margin, and net profit margin.
This result follows the calculator's declared inputs, precision, validation boundaries, and model limits.
Input contract
- Revenue — currency units; minimum 1.0E-6; maximum 1.0E+18
- Cost of goods sold — currency units; minimum 0; maximum 1.0E+18
- Operating expenses — currency units; minimum 0; maximum 1.0E+18
Worked example
| Input | Value |
|---|---|
| Revenue | 100000 |
| Cost of goods sold | 60000 |
| Operating expenses | 25000 |
Gross profit is 40,000, operating income is 15,000, and operating margin is 15%.
Assumptions and limits
- The entered expenses are operating items for the same period as revenue and cost of goods sold.
- Interest, income tax, unusual items, and other non-operating items are not inferred or added.
- Accounting classifications vary, so comparisons should use consistent statement definitions and periods.
Calculator note
Source and methodology
Use the official WorldCalculate methodology policy for the source, formula, precision, and boundary standards behind this calculator.
Planning estimate, not financial, medical, legal, or professional advice. © WorldCalculate — reuse with attribution. Built and curated by Hassan ALRowaie.
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