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:
- First, determine the total earnings before interest and tax ($).
- The total earnings before interest and tax ($) is given as: 134.
- Next, determine the total associated costs ($).
- The total associated costs ($) is provided as: 50.
- 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 = ?
