Quick answer
EBITDA margin = EBITDA ÷ revenue × 100. $500,000 of EBITDA on $2,500,000 of revenue is a 20% margin.
Enter revenue and EBITDA. The calculator returns the margin and the profit amount.
Related tools: Contribution Margin Calculator: Per-unit contribution and contribution margin ratio. Operating Margin Calculator: Operating income as a share of revenue. Net Profit Margin Calculator: Net profit as a share of revenue.
How to use the EBITDA Margin Calculator
- Enter revenue ($) (above 0).
- Enter eBITDA ($).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Revenue | A number, in $ | > 0 |
| EBITDA | A number, in $ | — |
Formula and method
Formula
margin = profit measure ÷ revenue × 100
IEEE-754 double precision; shown to the decimals indicated.
Use the same period and currency for both numbers.
Worked examples
This example is verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Revenue = 2500000; EBITDA = 500000.
| Result | Value |
|---|---|
| EBITDA Margin | 20% |
| Profit as an amount | $500,000.00 |
The first line is the headline result (eBITDA Margin). Below it the eBITDA Margin Calculator lists profit as an amount, which describe the same case from other angles. IEEE-754 double precision; shown to the decimals indicated.
What EBITDA includes
EBITDA is earnings before interest, taxes, depreciation and amortisation. It approximates operating cash profit, ignoring financing and accounting choices, which makes companies easier to compare. It does not reflect capital spending or working-capital needs.
Using the margin
Compare margins within an industry, since software firms often exceed 20% while retailers run lower. A negative EBITDA gives a negative margin. The same calculation works for other profit measures such as operating profit.
How the result changes with revenue
Holding every other input at the first worked example, this table changes only revenue. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Revenue | EBITDA Margin | Profit as an amount |
|---|---|---|
| 1250000 | 40% | $500,000.00 |
| 2500000 | 20% | $500,000.00 |
| 5000000 | 10% | $500,000.00 |
| 10000000 | 5% | $500,000.00 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Revenue: entering "0" shows "Revenue must be greater than 0." beside that field and no result.
- EBITDA: left empty shows "Enter ebitda." beside that field and no result.
Choosing between the EBITDA Margin Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Contribution Margin Calculator](/business/contribution-margin-calculator/) | selling price per unit and variable cost per unit | Contribution per unit |
| [Operating Margin Calculator](/business/operating-margin-calculator/) | revenue and operating income | Operating Margin |
| [Net Profit Margin Calculator](/business/net-profit-margin-calculator/) | revenue and net profit | Net Profit Margin |
| [Margin Calculator](/business/margin-calculator/) | cost and revenue | Gross margin |
| [Revenue Calculator](/business/revenue/) | price per unit and units sold | Revenue |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Negative profit gives a negative margin
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for revenue and eBITDA to confirm this.
Frequently asked questions
Is EBITDA the same as cash flow?
No, it excludes capital expenditure and changes in working capital.
What is a good EBITDA margin?
It depends on the industry.
Can the margin be negative?
Yes, when EBITDA is a loss.
What does the EBITDA Margin Calculator calculate?
EBITDA as a share of revenue. It returns EBITDA Margin and Profit as an amount.
What formula does the EBITDA Margin Calculator use?
margin = profit measure ÷ revenue × 100. Use the same period and currency for both numbers.
What do I need to enter in the eBITDA Margin Calculator?
You enter Revenue ($) and EBITDA ($).
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. Negative profit gives a negative margin.
What is an example of a eBITDA Margin result?
With revenue 2500000 and eBITDA 500000, the eBITDA Margin is 20%.
Related calculators
- Contribution Margin Calculator — Per-unit contribution and contribution margin ratio.
- Operating Margin Calculator — Operating income as a share of revenue.
- Net Profit Margin Calculator — Net profit as a share of revenue.
- Margin Calculator — Profit, gross margin and markup from cost and revenue.
- Revenue Calculator — Revenue from price and units sold.
- Margin of Error Calculator — Margin of error for a mean or a proportion.
Sources
- OpenStax, Principles of Accounting, Volume 2: Managerial Accounting (Rice University)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.