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

Segment Margin Formula

The following formula is used to calculate the Segment Margin. 

SEM = (SR – SC) / SR * 100

  • Where SEM is the Segment Margin (%)
  • SR is the total segment revenue ($) 
  • SC is the total segment costs ($) 

How to Calculate Segment Margin?

The following example problems outline how to calculate Segment Margin.

Example Problem #1:

  1. First, determine the total segment revenue ($). 
    • The total segment revenue ($) is given as: 150.
  2. Next, determine the total segment costs ($). 
    • The total segment costs ($) is provided as: 70.
  3. Finally, calculate the Segment Margin using the equation above: 

SEM = (SR – SC) / SR * 100

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

SEM = (150 – 70) / 150 * 100 = 53.33 (%)

Example Problem #2: 

For this problem, the variables required are provided below:

total segment revenue ($) = 60

total segment costs ($) = 10

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

SEM = (SR – SC) / SR * 100 = ?