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EBITDA Calculator

EBITDA strips out financing costs, tax and the two big non-cash charges to show what the operating business actually earned.

EBITDA

$795,000.00

EBIT
$595,000.00
Total add-backs
$475,000.00
EBITDA margin
53.00%

Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.

The formula this calculator uses

EBITDA = net income + tax + interest + depreciation + amortisation

E
EBITDA for the period
NI
Net income after all expenses
D and A
Depreciation and amortisation, non-cash charges

How to check the result by hand

  1. 1

    Take net income from the income statement

    The bottom line, after tax, interest, depreciation and amortisation have already been deducted. Three hundred and twenty thousand in the worked example.

  2. 2

    Add back tax and interest

    One hundred and eighty thousand of tax and ninety five thousand of interest. Both are removed because they reflect jurisdiction and financing rather than trading.

  3. 3

    Add back depreciation and amortisation

    One hundred and forty thousand and sixty thousand respectively. These are non-cash accounting charges, though the assets they represent do eventually need replacing.

  4. 4

    Sum the five figures

    Three hundred and twenty plus one hundred and eighty plus ninety five plus one hundred and forty plus sixty thousand is seven hundred and ninety five thousand.

  5. 5

    Divide by revenue for the margin

    Seven hundred and ninety five thousand on one point five million of revenue is a fifty three percent EBITDA margin, which signals a capital-light operation.

For worked examples, common mistakes and the limits of this formula, read the full How To Calculate EBITDA page.