AllMyCalculators

EBITDA Calculator

Adds interest, tax, depreciation and amortisation back to profit.

Optional, for the margin.

Used when starting from net income.

Used when starting from net income. Enter net interest received as a negative figure.

Used when starting from net income. Enter a tax credit as a negative figure.

Used when starting from operating profit.

EBITDA
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Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.

EBITDA margin — %
EBIT —
Reading this —

The formula

EBITDA = net income + interest + tax + depreciation + amortisation EBITDA = operating profit + depreciation + amortisation margin = EBITDA ÷ revenue

The two routes agree when only interest and tax sit between operating profit and net income. One-off gains or other income can make them differ.

What to watch out for

Choose the figure you have, then enter the items to add back from the same period. The fields for the other route are ignored.

Frequently Asked Questions

How do I calculate EBITDA from net income?

Add back interest, tax, depreciation and amortisation. 50,000 + 5,000 + 10,000 + 15,000 + 5,000 = 85,000. On revenue of 400,000 that is a margin of 21.25%.

How do I calculate it from operating profit?

Add back depreciation and amortisation only, because interest and tax come below operating profit. 65,000 + 15,000 + 5,000 = 85,000.

Why can EBITDA be misleading?

It leaves out real costs. Equipment wears out and has to be replaced, debts carry interest and tax has to be paid. A business with a healthy EBITDA can still lose money and run out of cash, so read it alongside net profit and cash flow.

What is a good EBITDA margin?

It depends on the industry, since some need far more equipment than others. Compare with similar businesses, and check whether their figure is adjusted, because adjusted EBITDA can leave out further costs.