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