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
| Field | What to enter |
|---|---|
| Revenue | Amount in your currency |
| Operating income (EBIT) | Amount in your currency |
| Depreciation | Amount in your currency |
| Amortization | Amount 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:
| Revenue | EBITDA margin (%) |
|---|---|
| 1,250,000 | 36 |
| 1,875,000 | 24 |
| 2,500,000 | 18 |
| 3,125,000 | 14.4 |
| 3,750,000 | 12 |
| 5,000,000 | 9 |
Formula
EBITDA = operating income + depreciation + amortizationEBITDA margin = EBITDA ÷ revenue × 100Worked 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 %.
Frequently asked questions
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.