Enter the total revenue ($) and the total direct costs ($) into the Direct Margin Calculator. The calculator will evaluate and display the Direct Margin.

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## Direct Margin Formula

The following formula is used to calculate the Direct Margin.

DM = (TR-DC) / TR *100

- Where DM is the Direct Margin (%)
- TR is the total revenue ($)
- DC is the total direct costs ($)

## How to Calculate Direct Margin?

The following example problems outline how to calculate Direct Margin.

Example Problem #1:

- First, determine the total revenue ($).
- The total revenue ($) is given as: 600.

- Next, determine the total direct costs ($).
- The total direct costs ($) is provided as: 300.

- Finally, calculate the Direct Margin using the equation above:

DM = (TR-DC) / TR *100

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

DM = (600-300) / 600 *100 = 50 (%)

Example Problem #2:** **

For this problem, the variables required are provided below:

total revenue ($) = 700

total direct costs ($) = 300

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

DM = (TR-DC) / TR *100** = ?**