EBITDA Calculator
EBITDA is earnings before interest, taxes, depreciation and amortization. It shows how much a business earns from its running work, before loans, taxes and the wear on older equipment are counted.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
From net income, add back interest, income taxes, depreciation and amortization. From operating income, add back only depreciation and amortization, since operating income already comes before interest and taxes.
The margin is EBITDA divided by revenue, times 100.
Worked example
On revenue of $500,000.00, EBITDA comes to $125,000.00, which is a margin of 25%.
Questions
Is EBITDA the same as profit?
No. It leaves out interest, taxes and the cost of wearing out equipment, so it is usually higher than net profit.
Where do I find these numbers?
They are on the income statement. Net income is the bottom line, and operating income sits above interest and taxes.
Does EBITDA show cash?
Not exactly. It ignores changes in working capital and spending on equipment, so cash can differ a lot from EBITDA.
More like this
- Sales Tax CalculatorAdd sales tax to a price, or take it out of a total.
- Net Promoter Score CalculatorPromoter share minus detractor share, from survey counts.
- Markup CalculatorMarkup and margin from cost and selling price.
- Lead Time CalculatorExpected arrival from order date, production and shipping days.
- ROI CalculatorSimple and yearly return on an investment.
- Commission CalculatorCommission from sales, at one flat rate or two rates.