Enter the total earnings before interest and tax ($) and the total associated costs ($) into the EBITDA Margin Calculator. The calculator will evaluate and display the EBITDA Margin. 

EBITDA Margin Formula

The following formula is used to calculate the EBITDA Margin. 

EM = (EBITDA - AC) / EBITDA * 100
  • Where EM is the EBITDA Margin (%)
  • EBITDA is the total earnings before interest and tax ($) 
  • AC is the total associated costs ($) 

How to Calculate EBITDA Margin?

The following example problems outline how to calculate EBITDA Margin.

Example Problem #1:

  1. First, determine the total earnings before interest and tax ($).
    • The total earnings before interest and tax ($) is given as: 134.
  2. Next, determine the total associated costs ($).
    • The total associated costs ($) is provided as: 50.
  3. Finally, calculate the EBITDA Margin using the equation above: 

EM = (EBITDA – AC) / EBITDA * 100

The values given above are inserted into the equation below and the solution is calculated:

EM = (134 – 50) / 134* 100 = 62.68 (%)

Example Problem #2: 

For this problem, the variables required are provided below:

total earnings before interest and tax ($) = 578

total associated costs ($) = 84

Test your knowledge using the equation and check your answer with the calculator above.

EM = (EBITDA – AC) / EBITDA * 100 = ?