Plain-language questions
Ask for EBITDA margin per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Finance
EBITDA margin: formula and example.
EBITDA margin is EBITDA divided by revenue, expressed as a percentage. It shows what share of revenue day-to-day operations generate before depreciation, interest and tax. Because it is a percentage, you can compare EBITDA margin across years, business units or companies of different sizes.
EBITDA margin formula
EBITDA ÷ revenue × 100%
Worked example
In 2025 Acme Groothandel had EBITDA of €960,000 on revenue of €12,000,000. EBITDA margin is €960,000 ÷ €12,000,000 × 100% = 8%. In 2024 EBITDA was €756,000 on €10,800,000 of revenue, a margin of 7%.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A rising EBITDA margin means costs are growing more slowly than revenue, or gross margin is improving. Compare it with previous years, with budget and across business units. Comparing with other companies only makes sense within the same sector and using the same EBITDA definition.
Pitfalls with EBITDA margin
- Comparing a seasonal peak quarter with a quiet one instead of with the same quarter last year.
- Taking revenue and EBITDA from different sources or periods, for example revenue from the order system and costs from the ledger.
- Crediting an improved margin to efficiency when it actually comes from a postponed cost.
SQL & DAX
Calculating EBITDA margin in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('year', entry_date)::date AS year,
SUM(amount) FILTER (WHERE account_group = 'revenue') AS revenue,
SUM(CASE WHEN account_group = 'revenue' THEN amount ELSE -amount END) AS ebitda,
ROUND(100.0 * SUM(CASE WHEN account_group = 'revenue' THEN amount ELSE -amount END)
/ NULLIF(SUM(amount) FILTER (WHERE account_group = 'revenue'), 0), 1) AS ebitda_margin_pct
FROM gl_entries
WHERE account_group IN ('revenue', 'cogs', 'personnel', 'other_opex')
GROUP BY 1
ORDER BY 1;EBITDA =
CALCULATE(SUM(GL[Amount]), GL[AccountGroup] = "revenue")
- CALCULATE(SUM(GL[Amount]), GL[AccountGroup] IN {"cogs", "personnel", "other_opex"})
EBITDA Margin % = DIVIDE([EBITDA], CALCULATE(SUM(GL[Amount]), GL[AccountGroup] = "revenue"))In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate EBITDA margin?
Divide EBITDA by revenue and multiply by 100%. With €960,000 of EBITDA on €12,000,000 of revenue, EBITDA margin is 8%. Work out EBITDA first as revenue minus all operating costs except depreciation and amortisation.
What is the difference between EBITDA margin and gross margin?
Gross margin deducts only cost of goods sold, while EBITDA margin also deducts staff and other operating expenses. A company can therefore have a stable gross margin and a falling EBITDA margin if overheads grow faster than revenue.
What should you compare EBITDA margin with?
Compare EBITDA margin first with your own figures for previous years and with budget. Comparing with other companies only works within the same sector, because cost structures differ widely between business models.
Further reading
- KPI libraryFinancial KPIs: formulas and examplesFinancial KPIs show how profitable, liquid and solvent an organisation is. The data usually comes from your accounting package or ERP: general ledger entries, invoices and open items.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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