EBITDA Calculator

Calculate Earnings Before Interest, Taxes, Depreciation, and Amortization

Use this tool to compute EBITDA using net income or operating income. Enter your financial data below and get instant results.

EBITDA Calculation Examples

See how EBITDA is calculated in real-world scenarios.

Tech Startup Annual EBITDA

From Net Income

A tech startup wants to calculate its EBITDA for the year using net income.

Method: From Net Income

Net Income: 50000

Interest: 3000

Taxes: 8000

Depreciation: 4000

Amortization: 2000

Revenue: 120000

Manufacturing Company Quarterly EBITDA

From Operating Income

A manufacturing company calculates EBITDA from operating income.

Method: From Operating Income

Operating Income: 70000

Depreciation: 6000

Amortization: 2500

Revenue: 200000

Retail Store EBITDA Calculation

From Net Income

A retail store uses net income to find EBITDA for a quarter.

Method: From Net Income

Net Income: 15000

Interest: 1200

Taxes: 2500

Depreciation: 800

Amortization: 400

Revenue: 40000

Service Business EBITDA Example

From Operating Income

A service business calculates EBITDA from operating income.

Method: From Operating Income

Operating Income: 22000

Depreciation: 1500

Amortization: 600

Revenue: 50000

Other Titles
Understanding EBITDA Calculator: A Comprehensive Guide
Everything you need to know about calculating EBITDA for your business.

What is EBITDA?

  • Definition and Importance
  • EBITDA vs. Net Income
  • EBITDA in Financial Analysis
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a key financial metric used to assess a company's operating performance by excluding non-operating expenses and non-cash charges.
Why Use EBITDA?

EBITDA in Practice

  • A company with high depreciation expenses can still show strong EBITDA.
  • Investors use EBITDA to compare profitability across companies.

Step-by-Step Guide to Using the EBITDA Calculator

  • Choosing the Calculation Method
  • Entering Financial Data
  • Interpreting Results
Select whether you want to calculate EBITDA from net income or operating income. Enter the required financial figures, and the calculator will instantly provide the EBITDA value and margin.
Quick and Accurate Calculations

Step-by-Step Examples

  • Calculating EBITDA from net income for a tech startup.
  • Using operating income for a manufacturing company.

Real-World Applications of EBITDA

  • Business Valuation
  • Profitability Analysis
  • Loan Applications
EBITDA is widely used in business valuation, profitability analysis, and when applying for loans. It provides a clear picture of operational efficiency, making it a favorite among investors and analysts.
EBITDA in Financial Decisions

Applications in Business

  • Banks may require EBITDA figures for loan approval.
  • EBITDA is used in mergers and acquisitions to assess value.

Common Misconceptions and Correct Methods

  • EBITDA is Not Cash Flow
  • Ignoring Non-Recurring Items
  • Proper Use of EBITDA
While EBITDA is a useful metric, it is not a substitute for cash flow. It should be used alongside other financial metrics for a complete analysis.
Avoiding Calculation Errors

Misconceptions Explained

  • Do not use EBITDA as the only measure of profitability.
  • Exclude one-time gains or losses from EBITDA calculations.

Mathematical Derivation and Examples

  • EBITDA Formula from Net Income
  • EBITDA Formula from Operating Income
  • Sample Calculations
EBITDA can be calculated using two main formulas: (1) From Net Income: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization; (2) From Operating Income: EBITDA = Operating Income + Depreciation + Amortization.
Worked Examples

Mathematical Examples

  • A company with net income of $50,000, interest of $3,000, taxes of $8,000, depreciation of $4,000, and amortization of $2,000 has EBITDA of $67,000.
  • A business with operating income of $22,000, depreciation of $1,500, and amortization of $600 has EBITDA of $24,100.