business calculator
Operating Margin & EBIT Calculator
Calculate gross profit, operating income (EBIT), operating margin percentage, and gross margin.
Formula Verified by Dr. Marcus Sterling, PhD
Inputs
Results
Gross Profit$60,000
Gross Margin60.0%
Operating Income (EBIT)
$30,000
Operating Margin
30.0%
Formula
Operating Margin & EBIT Formulas
Gross Profit = Revenue - COGS. EBIT = Gross Profit - OPEX. Operating Margin = (EBIT / Revenue) * 100.Calculates the percentage of revenue left over after paying for costs of production and operating expenses.
Step by step
How the calculation works
- 1Enter your total business revenue for the target period.
- 2Input your Cost of Goods Sold (COGS) to calculate gross margin.
- 3Provide total operating expenses (OPEX) including rent, salaries, and admin costs.
- 4Review your live operating profit (EBIT) and margin efficiency.
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