Free · Microeconomics calculators 💲

Operating Income & Revenue Margin

Calculate operating income and margin from revenue, cost of goods sold and operating expenses, including operating losses.

  • Formula & worked example
  • Private in your browser
  • No signup
Go to tool

Calculator inputs

Loading calculator…

How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Revenue of 1,000, cost of goods sold of 600 and operating expenses of 250 produce operating income of 150 and margin of 15%.

Operating income = revenue − cost of goods sold − operating expenses; operating margin = operating income / revenue

Worked example

Enter these known values and leave the other values blank.

Revenue
1000 USD
Cost of goods sold
600 USD
Operating expenses
250 USD
Operating income
150 USD
Operating margin
15 %

Assumptions and limitations

  • Use comparable amounts from the same reporting period. Avoid counting expenses twice between cost of goods sold and operating expenses.
  • Revenue must be positive and the two expense categories nonnegative. Negative operating income and margin represent an operating loss.
  • This operating measure excludes financing costs and income tax; it does not establish net profit or cash flow.
  • Use the same currency for comparable inputs. Currency selectors use the captured October 7, 2026 exchange-rate snapshot, not current market rates.

Common questions

Can operating margin be negative?

Yes. Expenses greater than revenue produce negative operating income and a negative margin. Zero revenue has no defined percentage margin.

References

Bookify requires positive revenue for percentage margin while retaining valid negative operating income and margins.

Explore microeconomics calculators 💲 or browse all finance calculators.