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:
- First, determine the total segment revenue ($).
- The total segment revenue ($) is given as: 150.
- Next, determine the total segment costs ($).
- The total segment costs ($) is provided as: 70.
- 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 = ?
