Enter the overall business revenue ($) and the total fixed and variable business costs ($) into the Business Margin Calculator. The calculator will evaluate and display the Business Margin. 

Business Margin Formula

The following formula is used to calculate the Business Margin. 

BM = (BR-BC) / BR * 100
  • Where BM is the Business Margin (%)
  • BR is the overall business revenue ($) 
  • BC is the total fixed and variable business costs ($) 

How to Calculate Business Margin?

The following example problems outline how to calculate Business Margin.

Example Problem #1:

  1. First, determine the overall business revenue ($).
    • The overall business revenue ($) is given as: 75,000.
  2. Next, determine the total fixed and variable business costs ($).
    • The total fixed and variable business costs ($) is provided as: 50,000.
  3. Finally, calculate the Business Margin using the equation above: 

BM = (BR-BC) / BR * 100

The values given above are inserted into the equation below and the solution is calculated:

BM = (75,000-50,000) / 75,000 * 100 = 33.33 (%)

Example Problem #2: 

For this problem, the variables required are provided below:

overall business revenue ($) = 60,000

total fixed and variable business costs ($) = 30,000

Test your knowledge using the equation and check your answer with the calculator above.

BM = (BR-BC) / BR * 100 = ?