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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

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. 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

EBITDARevenueGross marginNet incomeOperating profit

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