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EBITDA margin calculator

Divide EBITDA by revenue to get the EBITDA margin — the share of sales left as earnings before interest, taxes, depreciation and amortisation. It is the go-to profitability metric for comparing companies across different capital structures and tax regimes.

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Need EBITDA margin, EBITDA used? The EBITDA margin calculator derives it from EBITDA source, EBITDA, Net income (build mode), Interest (build mode), Taxes (build mode), Depreciation & amortisation (build mode), Total revenue in one step. For instance, with EBITDA source = I already have EBITDA, EBITDA = $500,000.00, Net income (build mode) = $250,000.00, Interest (build mode) = $50,000.00, Taxes (build mode) = $120,000.00, Depreciation & amortisation (build mode) = $80,000.00 and Total revenue = $2,000,000.00 it returns EBITDA margin = 25% and EBITDA used = $500,000.00.

How to use it

  1. Enter your values: EBITDA source, EBITDA, Net income (build mode), Interest (build mode), Taxes (build mode), Depreciation & amortisation (build mode), Total revenue.
  2. Read the result instantly: EBITDA margin, EBITDA used.

Frequently asked questions

What does the EBITDA margin calculator actually compute?

It takes EBITDA source, EBITDA, Net income (build mode), Interest (build mode), Taxes (build mode), Depreciation & amortisation (build mode) and Total revenue and derives EBITDA margin and EBITDA used from them. The calculation is live as you type, so the result updates on every change.

What information do I need to provide?

7 values: EBITDA source, EBITDA ($), Net income (build mode) ($), Interest (build mode) ($), Taxes (build mode) ($), Depreciation & amortisation (build mode) ($) and Total revenue ($). Nothing else is required — no account, no file upload.

Can you show a worked example?

With EBITDA source = I already have EBITDA, EBITDA = $500,000.00, Net income (build mode) = $250,000.00, Interest (build mode) = $50,000.00, Taxes (build mode) = $120,000.00, Depreciation & amortisation (build mode) = $80,000.00 and Total revenue = $2,000,000.00, the calculator returns EBITDA margin = 25% and EBITDA used = $500,000.00. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

What happens if I enter larger values?

It moves a lot. Using EBITDA source = Build it from net income, EBITDA = $1,000,000.00, Net income (build mode) = $500,000.00, Interest (build mode) = $55,000.00, Taxes (build mode) = $240,000.00, Depreciation & amortisation (build mode) = $160,000.00 and Total revenue = $4,000,000.00 instead, EBITDA margin goes from 25% to 23.88% — which is why it is worth testing a few scenarios rather than trusting a single figure.

Which “EBITDA source” option should I choose?

You can pick between « I already have EBITDA » and « Build it from net income ». Each one changes what the calculator works out, so switch and compare — the default is « I already have EBITDA ».

What does it give for smaller values?

Scaled down to EBITDA source = I already have EBITDA, EBITDA = $250,000.00, Net income (build mode) = $125,000.00, Interest (build mode) = $45,000.00, Taxes (build mode) = $60,000.00, Depreciation & amortisation (build mode) = $40,000.00 and Total revenue = $1,000,000.00, EBITDA used comes out at $250,000.00. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Setting a price that survives contact with reality: covering costs, hitting a target margin, and checking what the marketplace and payment fees leave behind.

What is the most common mistake?

Confusing margin with markup. A 50% markup is a 33% margin, and pricing as if they were the same undercharges by a third on every unit sold.

What is the difference between the EBITDA margin calculator and the Cash flow margin calculator?

This one returns EBITDA margin and EBITDA used; the Cash flow margin calculator returns Cash flow margin and Net margin, for comparison. That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Net profit margin calculator is the closest one after this: Compute the net profit margin from net income and revenue.

Further reading

All guides →
ExplainerEBITDA: What It Deliberately Leaves OutEBITDA adds back the two costs that differ most between companies, which is exactly what makes it comparable — and exactly why it flatters anyone who owns a lot of equipment. Here is the same profit walked all the way down, and the maintenance-capex floor the measure never shows.ComparisonEBITDA vs EBIT vs Net Income: One P&L, Three AnswersWalked down one $10M P&L: EBITDA of $1.8M, EBIT of $1.1M, net income of $525K. The gap is 70.8 percent of EBITDA — and it is the cost of the assets and the debt the business actually runs on.ExplainerWhat Is the Rule of 40? Six Ways to Score Exactly 40Growth rate plus profit margin should clear 40. But 60 percent growth at a minus 20 percent margin scores the same as 10 percent growth at a 30 percent margin — and on $10M of revenue those are opposite companies.ComparisonMarkup vs Margin: What's the Difference?Markup and margin both describe profit on a sale, but from different bases. Confusing them costs money — here's how each works and how to convert.ComparisonGross Margin vs Markup: The Confusion That Costs Real MoneyMargin is measured on the selling price, markup on the cost. They describe the same profit from opposite ends, they are never equal, and reading one as the other quietly removes a large slice of your gross profit.How-toHow to Calculate Your Break-Even PointYour break-even point is where revenue equals costs. Here's how to find it in units and revenue, and how to use it to make pricing decisions.