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 = ?