# Operating Margin Formula: How to Calculate and Benchmark

DevFeed: [Operating Margin Formula: How to Calculate and Benchmark](<https://devfeed.tech/articles/operating-margin-formula-how-to-calculate-and-benchmark-10193.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/operating-margin-formula/>)

Author: Ayush Agarwal

Published: 2026-04-11T00:00:00Z

Content type: tutorial

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>), [Finance](<https://devfeed.tech/topics/finance.md>), [Cloud](<https://devfeed.tech/topics/cloud.md>)

Tags: [cost](<https://devfeed.tech/tags/cost.md>), [finance](<https://devfeed.tech/tags/finance.md>), [growth](<https://devfeed.tech/tags/growth.md>), [guide](<https://devfeed.tech/tags/guide.md>), [how-to](<https://devfeed.tech/tags/how-to.md>), [metric](<https://devfeed.tech/tags/metric.md>), [saas](<https://devfeed.tech/tags/saas.md>), [saas-finance](<https://devfeed.tech/tags/saas-finance.md>)

## AI overview

A practical guide for SaaS founders explains operating margin, provides the standard formula and a step-by-step calculation, discusses benchmarking, and outlines ways to improve margin without slowing long-term growth.

## Source excerpt

A practical operating margin formula guide for SaaS founders. Learn how to calculate operating margin, benchmark it correctly, and improve it without slowing growth.