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