What is EBITDA margin?
EBITDA margin expresses EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) as a percentage of total revenue. It shows how much of every sales dollar is left over as core operating profit before financing costs, taxes, and non-cash charges, making it a popular way to compare operating efficiency across companies of different sizes.
The formula
EBITDA Margin = (EBITDA ÷ Revenue) × 100. A higher percentage generally indicates a more efficient, more profitable core operation relative to sales.
Enter your EBITDA and total revenue above to calculate the margin. This tool is for general financial analysis and education; industry norms for a “good” EBITDA margin vary widely, and this is not a substitute for professional financial advice.
Last reviewed August 2026