EBITDA Margin Calculator
EBITDA stands for earnings before interest, taxes, depreciation and amortization, and it approximates the cash a business generates from operations before financing and accounting choices distort the picture. This calculator builds EBITDA by taking operating income and adding back depreciation and amortization, then divides by revenue to give the EBITDA margin. Investors and acquirers lean on EBITDA margin to compare companies across different tax regimes and capital structures, which is why it appears in almost every deal. Enter revenue, total operating expenses excluding depreciation and amortization, then the depreciation and amortization figures, and the tool reports EBITDA in dollars and as a percent of revenue. It is a quick way to sanity check a valuation multiple or a lender covenant. Note that EBITDA ignores real capital needs, so pair it with cash flow. All math runs locally in your browser.
How to use EBITDA Margin Calculator
- Enter your revenue and expenses.
- Enter depreciation and amortization.
- Read the EBITDA and EBITDA margin percent.
Frequently asked questions
What does EBITDA measure?
EBITDA is earnings before interest, taxes, depreciation and amortization, a proxy for operating cash profitability.
How is EBITDA calculated here?
It starts from revenue minus expenses, then adds back depreciation and amortization to reach EBITDA, shown as a margin of revenue.
Why add back depreciation and amortization?
They are non cash charges, so removing them shows profitability from operations without the effect of past asset accounting.
What is EBITDA Margin Calculator?
EBITDA stands for earnings before interest, taxes, depreciation and amortization, and it approximates the cash a business generates from operations before financing and accounting choices distort the picture. This calculator builds EBITDA by taking operating income and adding back depreciation and amortization, then divides by revenue to give the EBITDA margin.
Is EBITDA Margin Calculator free to use?
Yes. EBITDA Margin Calculator is completely free, with no sign-up and no usage limits.
Does EBITDA Margin Calculator work in a web browser?
Yes. EBITDA Margin Calculator runs in any modern web browser. There is nothing to download or install.
Is my data private with EBITDA Margin Calculator?
Yes. EBITDA Margin Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.
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