Operating Margin Calculator

Calculate the operating margin to measure your company's operating efficiency and profitability.

Inputs

Operating Income (EBIT) (₹)

-10,00,00,0001,00,00,00,000

Net Sales / Revenue (₹)

11,00,00,00,000

Calculation Results

Operating Margin

20.00%

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Formula & Mathematical Explanation

\displaystyle \text{Operating Margin} = \left( \frac{\text{Operating Income}}{\text{Net Sales}} \right) \times 100

Operating margin shows the proportion of revenues remaining after paying for variable operating costs. It is calculated by dividing operating income (EBIT) by net sales.