---
title: "Operating Margin Calculator: Gross and Operating | MCC"
description: "Enter revenue, cost of goods sold and operating expenses to see gross margin and operating margin. Free and private."
url: "https://mcc-solutionsnj.com/bookkeeping/operating-margin-calculator"
---

Free tool

# Operating margin calculator

See what is left after the cost of what you sell and the cost of running the business. Enter revenue, cost of goods sold and operating expenses.

[![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)

Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software)

Revenue ($)

Cost of goods sold ($)

Operating expenses ($)

Prefer to talk it through? [Take the free books check](/bookkeeping/health-check) or [contact us](/contact).

Share

## Put this tool on your own site

Free to use. Paste this where you want it to appear. It runs in the visitor's browser, so nothing they enter is sent to us.

[See every calculator you can embed](/embed)

How it works

## How it works

**Gross profit** is revenue minus cost of goods sold. **Operating income** is gross profit minus operating expenses. Each margin is that profit divided by revenue.

FAQ

## About this calculator

**What is the difference between operating margin and net margin?**

Operating margin stops before interest and taxes. Net margin is after everything, so it includes interest, taxes and other income and expenses.

**What belongs in operating expenses?**

Day-to-day costs of running the business, such as rent, wages, software and marketing. Leave out interest and income taxes.

**Is a higher margin always better?**

Usually, but compare with similar businesses and your own history, since margins vary by industry.

**Is anything saved?**

No. The math runs in your browser and nothing you enter is sent to us.

**Is this tax or financial advice?**

No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.

Related: [net profit margin calculator](/bookkeeping/net-profit-margin-calculator), [profit margin and markup calculator](/bookkeeping/profit-margin-and-markup-calculator). See [all free tools](/free-tools). More free tools: [Small business tax deadlines](/bookkeeping/deadlines), [Receipt Expense Report](/bookkeeping/receipt-expense-report-python-script), [Bank Statement Converter](/bookkeeping/bank-statement-converter-python-script), or [see all free tools](/free-tools).

Free

### Month-End Close Checklist (PDF)

The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.

General information, not tax or legal advice. [How we write and check our tools](/editorial-standards).

Do it yourself

### Financial Ratio Analysis Workbook

Enter three years of statements and see margins, liquidity, leverage and efficiency ratios side by side, with what each one means in plain English.

[See what's inside ($29)](/toolkits/financial-ratio-analysis-workbook)14-day full refund

Tallyfinch

### Books you keep on your own computer

Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.

[See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software)

## Want your books and numbers handled?

[Free health check](/bookkeeping/health-check)[Call (908) 444-6373](tel:+19084446373)