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

## 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:

1. First, determine the total revenue ($). • The total revenue ($) is given as: 600.
2. Next, determine the total direct costs ($). • The total direct costs ($) is provided as: 300.
3. 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