EBITDA calculator
Start from net income and add back interest, taxes, depreciation and amortization to measure operating profit before financing and accounting choices.
Loading the tool…
Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter net income, interest expense, income taxes, depreciation, amortization and revenue (optional, for margin).
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
EBIT = net income + interest + taxes. EBITDA = EBIT + depreciation + amortization. Margin = EBITDA ÷ revenue × 100.
Example
Inputs: Net income = 150,000, Interest expense = 20,000, Income taxes = 30,000, Depreciation = 40,000, Amortization = 10,000. Result: EBITDA: 250,000.00; EBIT (operating profit): 200,000.00; EBITDA margin: 25%.
Limits and caveats
- EBITDA is not an IFRS or GAAP measure, and companies adjust it in different ways.
- It ignores capital spending and working capital changes, so it is not the same as cash flow.
Questions about this tool
Why do investors use EBITDA?
It compares operating profit across companies that differ in debt, taxes and depreciation methods.
What is the difference between depreciation and amortization here?
Depreciation covers tangible assets such as equipment; amortization covers intangibles such as software and licences.
Can EBITDA be negative?
Yes, when operating costs exceed revenue, which is common in startups.