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Operating Profit Percentage Calculator

Provided by Bankrate.com, Content Partner for the SME Toolkit

The operating profit percentage ratio compares sales to operating profit. Operating profit is what's left from your sales dollar after you've deducted your cost of goods sold and your ordinary operating costs.

How to use this calculator Your most recent income statement provides the numbers you need to calculate your operating profit percentage.
  1. Fill in your operating profit.
  2. Fill in your sales.
  3. Press "calculate."

Your operating profit percentage tells you the percentage of your sales that turn into profit. Because the figure excludes miscellaneous income and tax expenses, the operating profit percentage produces an accurate picture of the profitability of your primary business. Reductions in this figure over time might indicate a need to re-evaluate your pricing or your suppliers, or look for ways to cut down on your operating expenses.

 

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