Knowing your company’s financial performance is crucial for making informed business decisions. One of the most widely used metrics by business owners, investors, and analysts is EBITDA – short for Earnings Before Interest, Taxes, Depreciation, and Amortization.
Use Our EBITDA Calculator to Evaluate Your Company’s Operating Performance
EBITDA Calculator
Calculate Earnings Before Interest, Taxes, Depreciation & Amortization
EBITDA Calculator User Guide
Our EBITDA Calculator helps businesses and financial analysts determine Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), a key metric for assessing operational profitability. This Calculator supports two calculation methods:
- Net Income Method
- Operating Income (EBIT) Method
Net Income Method
Steps to Calculate EBITDA Using Net Income
- Enter Net Income
- Input the company’s net profit after all expenses (e.g., $150,000).
2. Add Back Key Expenses
- Interest Expense (e.g., $25,000) – Added back since EBITDA excludes financing costs.
- Tax Expense (e.g., $40,000) – Added back to remove tax impact.
- Depreciation (e.g., $30,000) – Non-cash expense, added back.
- Amortization (e.g., $10,000) – Non-cash expense, added back.
3. (Optional) Enter Revenue
- If provided (e.g., $500,000), the calculator will compute EBITDA Margin (EBITDA ÷ Revenue).
4. Click “Calculate EBITDA”
- Our calculator sums the adjustments and displays.
Operating Income (EBIT) Method
Steps to Calculate EBITDA Using EBIT
- Enter Operating Income (EBIT)
- Input earnings before interest and taxes (e.g., $215,000).
2. Add Back Non-Cash Expenses
- Depreciation (e.g., $30,000)
- Amortization (e.g., $10,000)
3. (Optional) Enter Revenue
- If provided (e.g., $255,000), the calculator computes EBITDA Margin.
4. Click “Calculate EBITDA”
After clicking calculate button you see the results with breakdown.
FAQ
How do you calculate the EBITDA?
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization.
What does 20% EBITDA mean?
It means the company earns 20% of its revenue as EBITDA, indicating strong operating profitability.
Is 12% EBITDA good?
Yes, a 12% EBITDA margin is generally considered healthy, depending on the industry.
How to calculate EBITDA from gross profit?
Add operating expenses (excluding depreciation and amortization) to gross profit, then add back depreciation and amortization.
How to EBITDA calculate from income statement?
Start with net income and add back interest, taxes, depreciation, and amortization shown in the income statement.
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