EBITDA Calculator

Calculate your Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and your EBITDA margin to measure true operational profitability.

Net Income USD Bottom line profit (can be negative) Please enter a valid net income

Total Revenue (Optional) USD Required to calculate EBITDA Margin Please enter a valid revenue

Interest Expense USD Please enter a valid amount

Taxes USD Please enter a valid amount

Depreciation USD Loss of value on tangible assets Please enter a valid amount

Amortization USD Loss of value on intangible assets Please enter a valid amount

Calculation Results

EBITDA

— USD

Earnings Before Interest, Taxes, Depreciation, and Amortization.

How to use this EBITDA calculator

Enter your Net Income

Start with your bottom-line profit (or loss) from your income statement.

Add back expenses

Input your interest, taxes, depreciation, and amortization. The calculator adds these non-operational and non-cash expenses back to your net income.

Enter Revenue (Optional)

If you want to calculate your EBITDA Margin, enter your total revenue (top-line sales).

Get your instant metrics

The tool automatically calculates your EBITDA, EBIT (Operating Profit), and EBITDA margin in real-time.

EBITDA Margin Reference Benchmarks

Total Revenue	Net Income	Taxes, Interest & D&A	EBITDA Margin
$5,00,000	$50,000	$25,000	15.0%
$5,00,000	$50,000	$50,000	20.0%
$5,00,000	$1,00,000	$25,000	25.0%
$5,00,000	$1,00,000	$50,000	30.0%
$10,00,000	$1,00,000	$50,000	15.0%
$10,00,000	$1,00,000	$1,00,000	20.0%
$10,00,000	$2,00,000	$50,000	25.0%
$10,00,000	$2,00,000	$1,00,000	30.0%
$50,00,000	$5,00,000	$2,50,000	15.0%
$50,00,000	$5,00,000	$5,00,000	20.0%
$50,00,000	$10,00,000	$2,50,000	25.0%
$50,00,000	$10,00,000	$5,00,000	30.0%
$1,00,00,000	$10,00,000	$5,00,000	15.0%
$1,00,00,000	$10,00,000	$10,00,000	20.0%
$1,00,00,000	$20,00,000	$5,00,000	25.0%
$1,00,00,000	$20,00,000	$10,00,000	30.0%
$5,00,00,000	$50,00,000	$25,00,000	15.0%
$5,00,00,000	$50,00,000	$50,00,000	20.0%
$5,00,00,000	$1,00,00,000	$25,00,000	25.0%
$5,00,00,000	$1,00,00,000	$50,00,000	30.0%

Frequently asked questions

What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company's operating performance by stripping out the effects of financing decisions, accounting decisions, and tax environments.

Why do we add back depreciation and amortization?

Depreciation and amortization are non-cash expenses. They represent the gradual write-off of assets over time, but they do not require an actual outflow of cash in the current period. Adding them back provides a clearer picture of the actual cash profit generated by the business's core operations.

What is a good EBITDA margin?

A "good" EBITDA margin depends heavily on the industry. Software and tech companies might have margins of 30-40% or higher, while retail or grocery businesses might operate on much thinner margins of 5-10%. Generally, an EBITDA margin of 10% or more is considered healthy across most traditional industries.

What is the difference between EBIT and EBITDA?

EBIT (Earnings Before Interest and Taxes) is often referred to as Operating Profit. It includes the cost of depreciation and amortization. EBITDA goes one step further by adding those non-cash expenses back in, making it closer to a proxy for operational cash flow.

About this calculator

This EBITDA calculator is a critical tool for business owners, investors, and financial analysts. EBITDA is widely used as a proxy for a company's cash flow and operational efficiency, making it the standard metric used in business valuations and merger/acquisition (M&A) multiples.

The calculations are based on the standard bottom-up accounting formulas:

EBIT = Net Income + Interest + Taxes
EBITDA = EBIT + Depreciation + Amortization

EBITDA Margin = (EBITDA ÷ Total Revenue) × 100

While EBITDA is an excellent tool for comparing the core profitability of different companies regardless of their capital structure, it is not a recognized GAAP (Generally Accepted Accounting Principles) metric. It can sometimes obscure heavy capital expenditure requirements, so it should always be reviewed alongside a full cash flow statement.