📊 EBITDA Margin Calculator
Calculate EBITDA margin percentage
How to Use This Calculator
Enter EBITDA
Input the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) - operating profit plus depreciation and amortization.
Enter Revenue
Enter the total revenue - all income from sales, services, or other business activities for the same period.
Review EBITDA Margin
See the EBITDA margin percentage - the percentage of revenue that becomes EBITDA. Higher margins indicate better operating profitability.
Formula
EBITDA Margin = (EBITDA / Revenue) × 100
Example Calculation:
If EBITDA $300,000, revenue $1,000,000:
• EBITDA margin = ($300,000 / $1,000,000) × 100 = 30%
• This means 30% of revenue becomes EBITDA
About EBITDA Margin Calculator
An EBITDA margin calculator helps you calculate the EBITDA margin percentage, which measures operating profitability as a percentage of revenue. EBITDA margin is calculated as (EBITDA / Revenue) × 100. Higher margins indicate better operating profitability and efficiency. EBITDA margin is an important metric for comparing operating performance across companies and industries, as it excludes the effects of financing, taxes, and accounting methods (depreciation and amortization).
When to Use This Calculator
- Profitability Analysis: Assess operating profitability
- Performance Comparison: Compare profitability across companies
- Business Valuation: Calculate EBITDA margin for valuation
- Financial Analysis: Analyze operating efficiency
Understanding EBITDA Margin
- Higher Margin: Better operating profitability (generally good)
- Lower Margin: Lower operating profitability (may need improvement)
- Industry Standards: Margins vary by industry
- Comparability: Useful for comparing operating performance
Why Use Our Calculator?
- ✅ Profitability Analysis: Calculate EBITDA margin accurately
- ✅ Performance Comparison: Compare profitability across companies
- ✅ Business Valuation: Calculate EBITDA margin for valuation
- ✅ Financial Analysis: Analyze operating efficiency
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is EBITDA margin?
EBITDA margin measures operating profitability as a percentage of revenue. It's calculated as (EBITDA / Revenue) × 100. Higher margins indicate better operating profitability and efficiency. EBITDA margin is an important metric for comparing operating performance across companies and industries, as it excludes the effects of financing, taxes, and accounting methods (depreciation and amortization).
What's a good EBITDA margin?
A good EBITDA margin depends on your industry and business model. Generally, EBITDA margins above 30% are considered excellent (SaaS, tech companies), 15-30% are good (manufacturing, services), 10-15% are average (retail, construction), and below 10% are low (low-margin industries like grocery). Compare to industry benchmarks and historical trends.
How is EBITDA margin different from profit margin?
EBITDA margin excludes interest, taxes, depreciation, and amortization, while profit margin (net margin) includes all expenses and taxes. EBITDA margin shows operating profitability, while profit margin shows final profitability. EBITDA margin is useful for comparing operating performance, while profit margin shows actual profit after all expenses. Both metrics are important for different purposes.
Why is EBITDA margin important?
EBITDA margin is important because it measures operating profitability and efficiency. It helps: (1) Compare operating performance - compare companies with different capital structures, (2) Assess profitability - evaluate operating profitability, (3) Business valuation - calculate EBITDA margin for valuation, (4) Financial analysis - analyze operating efficiency. EBITDA margin provides a clearer view of operating performance than profit margin.