EBITDA Margin Calculator

Calculate EBITDA Margin to evaluate a company's operating profitability by expressing EBITDA as a percentage of revenue.

Input Parameters

Calculation Results

Calculation Formula

EBITDA Margin = (EBITDA / Revenue) × 100%

Where:
- Revenue: Total income generated from business activities
- EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization

EBITDA Margin Calculator Usage Guide

Learn how to use the EBITDA Margin Calculator and its working principles

How to Use the Calculator

  1. Enter the company's total revenue in the "Revenue" field.
  2. Enter the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the "EBITDA" field.
  3. Click the "Calculate" button to compute the EBITDA Margin percentage.
  4. The result will be displayed in the "EBITDA Margin (%)" field.

Understanding EBITDA Margin

EBITDA Margin is a financial metric that shows how much profit a company generates before accounting for interest, taxes, depreciation, and amortization relative to its revenue. It helps investors assess a company's operational efficiency and profitability.

Interpreting the Results

A higher EBITDA Margin indicates better operational efficiency and profitability. For example, an EBITDA Margin of 20% means that for every dollar of revenue, the company generates 20 cents in EBITDA.

When to Use This Calculator

  • Comparing the operational efficiency of different companies
  • Tracking a company's performance over time
  • Assessing the impact of cost-cutting measures