EBITDA Margin Calculator
Divide EBITDA by revenue to find the EBITDA margin, the share of sales left as operating cash profit before interest, tax and non-cash charges.
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Enter EBITDA and revenue to see the EBITDA margin.
Worked example
With these example inputs:
- EBITDA$220,000
- Revenue$1,000,000
EBITDA margin: 22.0%
- The remaining share78.0%
- If the first figure were 10% higher24.2%
Frequently asked questions
What is a good EBITDA margin?
It varies widely by industry. Software firms often post high EBITDA margins, while retailers run thin ones, so compare within a sector rather than across.
Why use EBITDA margin?
It shows operating profitability stripped of financing, tax and accounting choices, making it easier to compare the core efficiency of different companies.