Enter the unit revenue ($) and the variable costs ($) into the Variable Margin Calculator. The calculator will evaluate and display the Variable Margin.
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Variable Margin Formula
The following formula is used to calculate the Variable Margin.
VM = (UR – VC) / UR * 100
- Where VM is the Variable Margin (%)
- UR is the unit revenue ($)
- VC is the variable costs ($)
How to Calculate Variable Margin?
The following example problems outline how to calculate Variable Margin.
Example Problem #1:
- First, determine the unit revenue ($).
- The unit revenue ($) is given as: 147.
- Next, determine the variable costs ($).
- The variable costs ($) is provided as: 30.
- Finally, calculate the Variable Margin using the equation above:
VM = (UR – VC) / UR * 100
The values given above are inserted into the equation below and the solution is calculated:
VM = (147 – 30) / 147 * 100 = 79.59 (%)
Example Problem #2:
For this problem, the variables required are provided below:
unit revenue ($) = 80
variable costs ($) = 30
Test your knowledge using the equation and check your answer with the calculator above.
VM = (UR – VC) / UR * 100 = ?
