FreeByte

Operating margin calculator

Profit from core trading.

Built and reviewed by Dovanic, Founder and editor, FreeByteLast reviewed: 2026-08-18
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Operating margin

17.5%

Operating profit

$70,000

With these inputs, operating margin comes to 17.5%. Operating profit works out to $70,000.

Gross profit
$190,000
Overhead ratio
30.0%

What moves the number · Operating margin

Input−10%Now+10%
Revenue8.3%17.5%25.0%
Direct costs22.8%17.5%12.2%
Operating expenses20.5%17.5%14.5%

Solve for an input

Whatmakesequal

Compare scenarios

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Profit from core trading.

A worked example

Starting figures

Revenue
$400,000
Direct costs
$210,000
Operating expenses
$120,000

What it returns

Operating margin
17.5%
Operating profit
$70,000
Gross profit
$190,000
Overhead ratio
30.0%

How to read the results

With the defaults above, operating margin works out at 17.5%.

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