# How to Calculate Ebitda Margin?

How to calculate Ebitda (Earnings Before Interest, Taxes, Depreciation and Amortization) Margin?

## Ebitda Margin Calculation

Ebitda Margin is the measurement of operating cash profitability of a company in a year. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided by total revenue.

**Formula**

To find the Ebitda Margin, you should find the Ebitda value.

**EBITDA Margin = EBITDA / Total Revenue**

**EBITDA = EBIT + Depreciation + Amortization**

**Step 1:** Consider that a company, has the total revenue of Rs. 1,000,00, EBIT of Rs. 50,000, Depreciation of Rs. 20,000 and Amortization of Rs. 10,000. Find the Ebitda Margin of the company.

Total Revenue = Rs.1,000,00

EBIT = Rs.50,000

Depreciation = Rs.20,000

Amortization = Rs.10,000

Step 2: For finding the EBITDA Margin, we should first calculate the EBITDA value.

Substitute the values in EBITDA formula.

EBITDA = EBIT + Depreciation + Amortization

= 50,000 + 20,000 + 10,000

EBITDA = Rs. 80,000

**Step 3: **Now substitute the obtained value in the formula.

EBITDA Margin = EBITDA / Total Revenue

= 80,000 / 1,000,00

= 0.8

Percentage of Ebita Margin

= 0.8 x 100

**EBITDA Margin = 80%**

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