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.
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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:
- First, determine the overall business revenue ($).
- The overall business revenue ($) is given as: 75,000.
- Next, determine the total fixed and variable business costs ($).
- The total fixed and variable business costs ($) is provided as: 50,000.
- 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 = ?
