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:

- First, determine the gross profit for the customer ($).
- The gross profit for the customer ($) is given as: 80.

- Next, determine the gross revenue for the customer ($).
- The gross revenue for the customer ($) is provided as: 160.

- 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** = ?**