# 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% 