Enter the gross profit for the customer ($) and the gross revenue for the customer ($) into the Customer Margin Calculator. The calculator will evaluate and display the Customer Margin. 

Customer Margin Formula

The following formula is used to calculate the Customer Margin. 

CSM = GP / GR * 100
  • Where CSM is the Customer Margin (%)
  • GP is the gross profit for the customer ($) 
  • GR is the gross revenue for the customer ($) 

How to Calculate Customer Margin?

The following example problems outline how to calculate Customer Margin.

Example Problem #1:

  1. First, determine the gross profit for the customer ($).
    • The gross profit for the customer ($) is given as: 80.
  2. Next, determine the gross revenue for the customer ($).
    • The gross revenue for the customer ($) is provided as: 160.
  3. Finally, calculate the Customer Margin using the equation above: 

CSM = GP / GR * 100

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

CSM = 80 / 160 * 100 = 50 (%)


Example Problem #2: 

For this problem, the variables required are provided below:

gross profit for the customer ($) = 90

gross revenue for the customer ($) = 270

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

CSM = GP / GR * 100 = ?