# EBITDA Margin Calculator

URL: https://speedycalculator.com/calculators/finance/ebitda-margin/
Last updated: 2026-10-25

> The EBITDA margin calculator works out EBITDA as a percentage of revenue – from EBITDA directly or from operating income plus depreciation and amortization – to compare operating profitability across companies.

## Inputs

- Revenue
- Operating income (EBIT)
- Depreciation
- Amortization

## Results

- EBITDA
- EBITDA margin
- Operating margin

## Formula

```
EBITDA = operating income + depreciation + amortization
EBITDA margin = EBITDA ÷ revenue × 100
```

## Explanation

EBITDA margins vary by industry: software companies often exceed 30%, while retailers and restaurants may be below 10–15%.

### How to use the EBITDA Margin Calculator

- **Revenue**
- **Operating income (EBIT)**
- **Depreciation**
- **Amortization**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter revenue, operating income, depreciation and amortization.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterRevenueAmount in your currencyOperating income (EBIT)Amount in your currencyDepreciationAmount in your currencyAmortizationAmount in your currency

### What each result means

- **EBITDA** = [Operating income (EBIT)] + [Depreciation] + [Amortization]
- **EBITDA margin** = [EBITDA]÷[Revenue]×100
- **Operating margin** = [Operating income (EBIT)]÷[Revenue]×100

### Example values

How the main result changes when **Revenue** changes and everything else stays at the example values above:

RevenueEBITDA margin (%)1,250,000361,875,000242,500,000183,125,00014.43,750,000125,000,0009

## Worked example

Inputs — Revenue: $2,500,000; Operating income (EBIT): $300,000; Depreciation: $120,000; Amortization: $30,000.

Results — EBITDA = $450,000.00; **EBITDA margin = 18 %**; Operating margin = 12 %.

## FAQ

**What is a good EBITDA margin?**
It depends on the industry; above 15% is often considered good.

**How is EBITDA margin different from operating margin?**
It adds back depreciation and amortization.

**Can EBITDA margin be negative?**
Yes, if operating costs exceed revenue.

**What formula does the EBITDA Margin Calculator use?**
EBITDA = operating income + depreciation + amortization.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)