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