EBITDA Margin Calculator

Express EBITDA as a share of revenue so operating performance can be compared across companies.

About EBITDA Margin Calculator

Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup. Margin is what funds every fixed cost in a business business, and mispricing by a few points is the difference between scaling profitably and scaling losses.

Formula

EBITDA Margin

Margin % = (Revenue − Operating costs excluding interest, tax and depreciation) ÷ Revenue × 100

Revenue: Money received
Operating costs excluding interest, tax and depreciation: Direct cost of delivering it

Worked example

With the default values below, EBITDA Margin Calculator returns EBITDA Margin of 21.60%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Revenueminimum 0: 500,000
Operating costs excluding interest, tax and depreciationminimum 0: 392,000

Results

EBITDA Margin: 21.60%
Profit: $108,000.00
Markup on Cost: 27.55%
Cost as Share of Revenue: 78.40%

Step by step

1Values used
2EBITDA Margin
3EBITDA Margin= 21.60
4Profit= 108,000.00
5Markup on Cost= 27.55
6Cost as Share of Revenue= 78.40

Assumptions and limits

The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is EBITDA Margin calculated?

Margin % = (Revenue − Operating costs excluding interest, tax and depreciation) ÷ Revenue × 100 Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup.

Why does EBITDA Margin matter?

Margin is what funds every fixed cost in a business business, and mispricing by a few points is the difference between scaling profitably and scaling losses.

What values do I need to enter?

This calculator takes 2 inputs: Revenue, Operating costs excluding interest, tax and depreciation. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.