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EBITDA Margin Calculator

Written by:
PK

Below is an EBITDA margin calculator to compute earnings before interest expenses, taxes, depreciation, and amortization margin. Enter a company's net earnings, interest expenses, amortization, depreciation, and tax payments in the period, and total revenues to compute the EBITDA margin.

EBITDA Margin Calculator

What is the EBITDA Margin?

The EBITDA margin is a measure of a company's Earnings Before Interest, Taxes, Depreciation, and Amortization (or EBITDA) as a percentage of its revenues. EBITDA is a modified measure of earnings that adjusts for taxes and the company's choice of capitalization by normalizing interest, and adds back amortization – the write-off of intangible assets – and depreciation – the write-off of tangible assets.

EBIT, EBITA, and EBITDA (and their further variants) all arguably show a company's situation better – or, in the case of a turnaround, before – than using net profit margins. EBITDA is arguably a closer measure to free cash flow, although the timing of purchases means the measures will differ.

EBITDA Margin Formula

The formula for EBITDA margin is:

EBITDA\ =net\ income+interest\ expense+tax\ expense\\+depreciation+amortization\\~\\
EBITDA\ Margin=\frac{EBITDA}{revenue}

Where:

  • Net Income: Net income from the income statement
  • Revenue: The company's top line sales
  • Tax Expense: The amount paid in taxes
  • Amortization: The amount the company listed as amortization in the period at hand
  • Depreciation: The amount the company depreciated in the current period
  • Interest Expense: Amount the company paid to service its debt in the period

Margin Calculators

Once you've done the math on EBITDA margin, try some of the other margin calculators:

      

PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK is in his mid-30s and works and lives in the Bay Area with his wife, two kids, and dog.

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