Revenue Growth & Incremental Margin Calculator
Is growing revenue turning into growing operating profit?
1. Enter your figures
Where do I find these numbers?
Take comparable revenue and operating-profit figures from financial statements. Check acquisitions, discontinued operations, currency effects and changes to adjusted measures before comparing periods.
Example units: Fictional business with two comparable annual periods, using CAD millions and the same operating-profit accounting basis.
2. Understand the result
Enter all 4 figures, or try the example.
3. Keep your research
Complete the figures above to save a calculation.
Saves in this browser. Sign in from the account menu to sync research across devices.How the calculation works
Incremental margin = change in operating profit ÷ change in revenue. Compare matching reporting periods.
Worked example
Fictional business with two comparable annual periods, using CAD millions and the same operating-profit accounting basis.
- Revenue growth
- +50%
- Operating profit change
- +20 million
- Incremental operating margin
- 40%
Revenue grew 50%. Of the CAD 50 million increase, CAD 20 million reached operating profit, an incremental margin of 40%. This does not test customer concentration or whether demand will last.
Where to find your figures
Take comparable revenue and operating-profit figures from financial statements. Check acquisitions, discontinued operations, currency effects and changes to adjusted measures before comparing periods.
Inputs are supplied by you. These calculations support research; they do not estimate a guaranteed return or recommend a trade.