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

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## 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: