What is my EBITDA?
Enter net income, interest, taxes, depreciation and amortization from an income statement to see EBITDA. Or start from operating income (EBIT). Add revenue to see the EBITDA margin.
- EBITDA
- $46,600.00
Adding back $3,600.00 of depreciation and amortization to EBIT of $43,000.00 gives EBITDA of $46,600.00.
- EBIT (operating income)
- $43,000.00
- Depreciation and amortization
- $3,600.00
EBITDA: $46,600.00. Adding back $3,600.00 of depreciation and amortization to EBIT of $43,000.00 gives EBITDA of $46,600.00.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes EBITDA (earnings before interest, taxes, depreciation and amortization) from net income or operating income, with EBIT and the EBITDA margin.
Example with the default inputs (Start from Net income, Net income $35,000.00, Interest expense $2,000.00, Income taxes $6,000.00, Depreciation $3,600.00, Amortization $0.00, Revenue $0.00): Adding back $3,600.00 of depreciation and amortization to EBIT of $43,000.00 gives EBITDA of $46,600.00.
Method: From net income: EBIT = net income + interest + taxes. From operating income: EBIT = operating income. EBITDA = EBIT + depreciation + amortization. EBITDA margin = EBITDA ÷ revenue × 100.
- All amounts cover the same period.
- Interest is net interest expense, and taxes are income taxes only.
- Arithmetic is exact on the typed decimals; money shows to the cent, halves up.
Worked examples
Each example is checked against the calculator on every build.
- Start from Net income, Net income $30,000.00, Interest expense $3,000.00, Income taxes $5,000.00, Depreciation $2,500.00 gives EBITDA $40,500.00, EBIT (operating income) $38,000.00.Source: OpenStax, Principles of Finance, 5.1 The Income Statement (EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/5-1-the-income-statement: 30,000 + 3,000 + 5,000 + 2,500 = 40,500
- Start from Net income, Net income $35,000.00, Interest expense $2,000.00, Income taxes $6,000.00, Depreciation $3,600.00 gives EBITDA $46,600.00.Source: OpenStax, Principles of Finance, 5.1 The Income Statement (EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/5-1-the-income-statement: 35,000 + 2,000 + 6,000 + 3,600 = 46,600
- Start from Operating income, Operating income (EBIT) $43,000.00, Depreciation $3,600.00, Amortization $0.00, Revenue $200,000.00 gives EBITDA $46,600.00, EBITDA margin 23.3%.Source: OpenStax, Principles of Finance, 5.1 The Income Statement (EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/5-1-the-income-statement (operating income $43,000)
- Start from Net income, Net income -$12,000.50, Interest expense $4,000.00, Income taxes -$1,500.00, Depreciation $9,000.00, Amortization $2,500.25 gives EBITDA $1,999.75, EBIT (operating income) -$9,500.50.
How it works
From net income:
- EBIT = net income + interest + taxes
- EBITDA = EBIT + depreciation + amortization
From operating income (EBIT):
- EBITDA = operating income + depreciation + amortization
When you enter revenue above $0:
- EBITDA margin = EBITDA ÷ revenue × 100
Rules:
- Net income, interest, taxes and operating income may be negative (a loss, net interest income, a tax benefit). Depreciation, amortization and revenue are $0 or more. Each amount is at most $1 quadrillion in size.
- Amortization is optional and counts as $0 when left empty. The margin shows only when revenue is more than $0; a revenue so small that the margin is too large to show gives no answer.
- The arithmetic is exact on the decimals you type. Money shows to the cent and the margin to 2 decimals, with halves rounded up (away from 0).
Assumptions
- All amounts are for the same period, from the same income statement.
Worked examples by hand
Clear Lake Sporting Goods, prior year. EBIT = 30,000 + 3,000 + 5,000 = $38,000. EBITDA = 38,000 + 2,500 = $40,500.
Clear Lake Sporting Goods, current year. EBITDA = 35,000 + 2,000 + 6,000 + 3,600 = $46,600.
The same year from operating income. EBITDA = 43,000 + 3,600 = $46,600. On $200,000 of revenue, the margin is 46,600 ÷ 200,000 × 100 = 23.3%.
A net loss. Net income −$12,000.50, interest $4,000, a tax benefit of −$1,500, depreciation $9,000 and amortization $2,500.25. EBIT = −12,000.50 + 4,000 − 1,500 = −$9,500.50. EBITDA = −9,500.50 + 9,000 + 2,500.25 = $1,999.75.
Other questions people ask
What is EBITDA?
EBITDA means earnings before interest, taxes, depreciation and amortization. It shows what a business earns from its operations before financing costs, taxes and the non-cash charges for wearing out its assets.
How do I calculate EBITDA?
Start with net income and add back interest, taxes, depreciation and amortization. Clear Lake Sporting Goods had net income of $35,000, interest of $2,000, taxes of $6,000 and depreciation of $3,600, so its EBITDA was $46,600.
How do I calculate EBITDA from operating income?
Operating income (EBIT) is already before interest and taxes, so add only depreciation and amortization. $43,000 of operating income plus $3,600 of depreciation is $46,600 of EBITDA.
What is the EBITDA margin?
The EBITDA margin is EBITDA as a percent of revenue. $46,600 of EBITDA on $200,000 of revenue is a 23.3% margin. It lets you compare businesses of different sizes.
What is the difference between EBIT and EBITDA?
EBIT (earnings before interest and taxes) is operating income after depreciation and amortization. EBITDA adds those two charges back, so EBITDA is EBIT plus depreciation and amortization.
Is EBITDA the same as cash flow?
No. EBITDA leaves out non-cash charges, so it is often used as a rough measure of operating cash. But it ignores changes in working capital, taxes paid and spending on new equipment. Free cash flow takes those into account.