EBITDA & Cash Operating Margin Calculator

EBITDA measures a company's overall financial performance and operating cash flow generation before accounting for capital structure, taxation, and non-cash depreciation.

To use the EBITDA & Cash Operating Margin Calculator, enter your Total Sales Revenue (), Net Income (), Interest Expense () and other values. The calculator instantly computes Earnings Before Interest, Taxes, D&A (EBITDA), EBITDA Operating Margin and more. Results update in real time as you change any input — no submit button needed.

How to Use This Calculator

Enter your Total Sales Revenue () (e.g. 2000000 in ), Net Income () (e.g. 300000 in ), Interest Expense () (e.g. 80000 in ), Income Tax Expense () (e.g. 70000 in ), Depreciation Expense () (e.g. 100000 in ), and Amortization Expense () (e.g. 50000 in ). Results update instantly as you type — adjust any value to compare scenarios.

The Formula

EBITDA = Net Income + Interest Expense + Income Tax Expense + Depreciation + Amortization

EBITDA Margin % = (EBITDA ÷ Total Sales Revenue) × 100

Worked Example

2,000,000 Revenue, 300,000 Net Income, 80,000 Interest, 70,000 Taxes, 100,000 Depreciation, 50,000 Amortization:

EBIT = 300,000 + 80,000 + 70,000 = 450,

000.

EBITDA = 450,000 + 100,000 + 50,000 = 600,000.00 (30.00% EBITDA Margin).

Understanding Your Result

EBITDA margin benchmarks by industry: Software/SaaS 20–40%, Healthcare services 10–20%, Retail 8–15%, Manufacturing 12–20%, Professional services 20–35%. EBITDA is not a GAAP metric and excludes capital expenditures — companies with heavy capex requirements (manufacturing, infrastructure) need to evaluate EBIT or free cash flow instead. Net profit margin below 5% indicates thin operating leverage; above 20% suggests strong pricing power or low competition in the niche.