Operating Profit Margin

The Operating Profit Margin is a fairly simple calculation meant to provide a business with an understanding of how much profit is earns relative to the cost of operations. Calculating this metric requires simply dividing the operating profit by the total organization revenue.

Operating Profit Margin Calculator


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Income Statement 2016 2017 2018
Revenue 102007 142341 150772
Cost of Goods Sold (COGS) 39023 52654 56710
Gross Profit 62984 89687 94062
Expenses
Salaries and Benefits 26427 23002 25245
Rent and Overhead 10963 11020 11412
Depreciation & Amortization 19500 16544 16080
Operating Expenses 56890 50566 52737
Operating Profit 6094 39122 41325
Operating Profit Margin 6% 27% 27%