EBITDA as % of revenue. The EBITDA Margin Calculator takes revenue, ebitda and returns ebitda margin plus ebitda per 100 of revenue. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Margins tell you where the money goes between revenue and profit. Track each margin over time and against similar businesses; a falling margin while revenue grows is the signal to investigate. Use the worked example below to check the maths against your own figures.
How the EBITDA Margin Calculator works
A proxy for cash operating profitability that ignores capital structure and asset age. Compare within an industry; capital-intensive businesses have high EBITDA margins that depreciation later eats.
Worked example
With the example values (revenue of $500,000, ebitda of $90,000), the ebitda margin is 18%; ebitda per 100 of revenue $18.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is ebitda margin calculated?
EBITDA margin = EBITDA ÷ revenue.
Which figures do I need?
Revenue, ebitda. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good margin?
It depends on the industry: grocery and distribution run on low single-digit net margins, software and services on 20% or more. Compare with similar businesses and watch your own trend.
