Enter the total sales ($) and the total costs associated with sales ($) into the Sales Margin Calculator. The calculator will evaluate and display the Sales Margin. 

Sales Margin Formula

The following formula is used to calculate the Sales Margin. 

SM = (TS-TCS) / TS * 100

  • Where SM is the Sales Margin (%)
  • TS is the total sales ($) 
  • TCS is the total costs associated with sales ($) 

How to Calculate Sales Margin?

The following example problems outline how to calculate Sales Margin.

Example Problem #1:

  1. First, determine the total sales ($). 
    • The total sales ($) is given as: 680.
  2. Next, determine the total costs associated with sales ($). 
    • The total costs associated with sales ($) is provided as: 300.
  3. Finally, calculate the Sales Margin using the equation above: 

SM = (TS-TCS) / TS * 100

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

SM = (680-300) / 680 * 100 = 55.88 (%)


Example Problem #2: 

For this problem, the variables required are provided below:

total sales ($) = 700

total costs associated with sales ($) = 400

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

SM = (TS-TCS) / TS * 100 = ?