EBITDA Margin Calculator

Profitability

Updated Apr 2026 • Has calculator

Operating profitability as a percentage of revenue, before interest, taxes, depreciation, and amortization.

Calculate EBITDA Margin

EBITDA Margin Formula

EBITDA Margin = (EBITDA ÷ Revenue) × 100

EBITDA

Operating income plus depreciation and amortization, in millions of USD

Revenue

Total annual revenue in millions of USD

EBITDA Margin

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Not investment advice.

What is EBITDA Margin?

EBITDA margin divides EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by total revenue. By adding back non-cash charges (depreciation and amortization), it approximates operating cash profitability and is widely used to compare companies across different capital structures and accounting policies. It is a common benchmark in leveraged buyouts, private equity, and cross-border comparisons where tax and depreciation rules differ. However, it ignores the real cost of capital expenditure needed to sustain assets.

Worked Example

FY2024

Step 1 Operating income: $123,216M + Depreciation & amortization: $11,455M = EBITDA: $134,671M

Step 2 Revenue: $391,035M

Step 3 EBITDA Margin = $134,671M ÷ $391,035M × 100 = 34.44%

Step 4 → Apple retains $0.34 of pre-depreciation operating cash for every $1.00 of revenue

Source: Apple 10-K FY2024 (2024-11-01)

How to Interpret EBITDA Margin

< 10

Low — thin margins, likely capital- or cost-intensive

10 – 20

Average — typical for industrials and consumer sectors

20 – 35

Strong — good operational efficiency

> 35

Exceptional — software, pharma, or platform economics

📚 Profitability Metrics — Complete the path

Sources