How to calculate EBITDA margin
The EBITDA margin formula, with plain worked examples you can check yourself.
EBITDA margin = EBITDA ÷ R × 100
The result is a percentage (%).
Worked examples
R = 1000 · EBITDA = 200EBITDA margin = 20%
R = 500 · EBITDA = 100EBITDA margin = 20%
R = 700 · EBITDA = 210EBITDA margin = 30%
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Multiply by 100 to show the answer as a percentage.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Profit & Margins.
Related terms
Practice EBITDA margin with real numbers
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