Result
EBITDA Margin
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
EBITDA = net profit + loan interest + income tax + depreciation. EBITDA Margin = EBITDA ÷ revenue × 100%. It shows how much of every dollar of revenue the business earns from operations alone, before debt load, tax jurisdiction and asset age affect the result.
EBITDA Margin is handy for comparing operating efficiency across companies with different capital structures and depreciation policies — but pair it with a free cash flow figure: a high EBITDA Margin doesn't guarantee the business has enough cash if it invests heavily in equipment or working capital grows fast.
If you need the EBITDA amount itself rather than a share, use the separate EBITDA calculator.