Enter the unit revenue ($) and the variable costs ($) into the Variable Margin Calculator. The calculator will evaluate and display the Variable Margin. 

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:

  1. First, determine the unit revenue ($). 
    • The unit revenue ($) is given as: 147.
  2. Next, determine the variable costs ($). 
    • The variable costs ($) is provided as: 30.
  3. 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 = ?