EBITDA Margin Calculator

About this calculator

The EBITDA margin expresses a company's earnings before interest, taxes, depreciation and amortization (EBITDA) as a percentage of revenue: EBITDA ÷ revenue × 100. Because it strips out financing decisions (interest), tax jurisdictions, and non-cash accounting charges (depreciation/amortization), it's often used as a rough proxy for core operating profitability and cash-generating ability, independent of how a company is capitalized or how it depreciates assets.

Equity analysts, investment bankers and private equity investors rely heavily on EBITDA margin to compare operating efficiency across companies of different sizes, capital structures and tax regimes — it's especially common in valuation multiples like EV/EBITDA. Business owners also track it to benchmark against industry peers and to see how efficiently a dollar of revenue converts into operating cash flow before capital-structure and accounting effects.