We study experimentally the fundamental limits of sensitivity of an atomic radio-frequency magnetometer. First, we apply an optimal sequence of state preparation, evolution, and the backaction evading measurement to achieve a nearly projection noise limited sensitivity. We furthermore experimentally demonstrate that Einstein-Podolsky-Rosen entanglement of atoms generated by a measurement enhances the sensitivity to pulsed magnetic fields. We demonstrate this quantum limited sensing in a magnetometer utilizing a truly macroscopic ensemble of 1.5×1012atoms which allows us to achieve subfemtotesla/ √Hz sensitivity.