{
  "id": "ebitda",
  "version": "1889ce867e03",
  "status": "published",
  "name": "EBITDA Calculator",
  "question": "What is my EBITDA?",
  "summary": "Computes EBITDA (earnings before interest, taxes, depreciation and amortization) from net income or operating income, with EBIT and the EBITDA margin.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/ebitda-calculator",
  "markdown": "https://www.acalculator.org/finance/ebitda-calculator.md",
  "kind": "function",
  "method": "From net income: EBIT = net income + interest + taxes. From operating income: EBIT = operating income. EBITDA = EBIT + depreciation + amortization. EBITDA margin = EBITDA ÷ revenue × 100.",
  "assumptions": [
    "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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "from": {
        "title": "Start from",
        "description": "Net income (the bottom line) or operating income (EBIT).",
        "type": "string",
        "enum": [
          "net",
          "operating"
        ]
      },
      "ni": {
        "title": "Net income",
        "description": "Profit after every expense, interest and tax. Negative for a loss.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "int": {
        "title": "Interest expense",
        "description": "Interest paid on debt, minus any interest income.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "tax": {
        "title": "Income taxes",
        "description": "Income tax expense for the period. Negative for a tax benefit.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "ebit": {
        "title": "Operating income (EBIT)",
        "description": "Gross profit minus operating expenses.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "dep": {
        "title": "Depreciation",
        "description": "The part of tangible assets’ cost charged this period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "amort": {
        "title": "Amortization",
        "description": "The part of intangible assets’ cost charged this period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "rev": {
        "title": "Revenue",
        "description": "Total sales for the period, for the EBITDA margin. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "ebitda": {
      "label": "EBITDA",
      "description": "Earnings before interest, taxes, depreciation and amortization.",
      "format": "money"
    },
    "ebit": {
      "label": "EBIT (operating income)",
      "description": "EBITDA minus depreciation and amortization.",
      "format": "money"
    },
    "addBacks": {
      "label": "Depreciation and amortization",
      "description": "The non-cash charges added back.",
      "format": "money"
    },
    "margin": {
      "label": "EBITDA margin",
      "description": "EBITDA ÷ revenue × 100.",
      "format": "percent"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "from": "net",
      "ni": 35000,
      "int": 2000,
      "tax": 6000,
      "ebit": 43000,
      "dep": 3600,
      "amort": 0,
      "rev": 0
    },
    "outputs": {
      "ebitda": 46600,
      "ebit": 43000,
      "addBacks": 3600
    },
    "text": "Adding back $3,600.00 of depreciation and amortization to EBIT of $43,000.00 gives EBITDA of $46,600.00."
  },
  "examples": [
    {
      "given": {
        "from": "net",
        "ni": 30000,
        "int": 3000,
        "tax": 5000,
        "dep": 2500
      },
      "expect": {
        "ebitda": 40500,
        "ebit": 38000
      },
      "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"
    },
    {
      "given": {
        "from": "net",
        "ni": 35000,
        "int": 2000,
        "tax": 6000,
        "dep": 3600
      },
      "expect": {
        "ebitda": 46600
      },
      "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"
    },
    {
      "given": {
        "from": "operating",
        "ebit": 43000,
        "dep": 3600,
        "amort": 0,
        "rev": 200000
      },
      "expect": {
        "ebitda": 46600,
        "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); hand calculation in content.mdx: 43,000 + 3,600 = 46,600; 46,600 ÷ 200,000 = 23.3%"
    },
    {
      "given": {
        "from": "net",
        "ni": -12000.5,
        "int": 4000,
        "tax": -1500,
        "dep": 9000,
        "amort": 2500.25
      },
      "expect": {
        "ebitda": 1999.75,
        "ebit": -9500.5
      },
      "source": "hand calculation in content.mdx: −12,000.50 + 4,000 − 1,500 + 9,000 + 2,500.25 = 1,999.75"
    }
  ],
  "sources": [
    "OpenStax, Principles of Finance, 5.1 The Income Statement: EBITDA = net income + interest + taxes + depreciation + amortization, and the Clear Lake Sporting Goods income statement (EBITDA of $40,500 and $46,600; operating income $43,000). https://openstax.org/books/principles-finance/pages/5-1-the-income-statement (retrieved 2026-10-05)"
  ],
  "related": [
    "gross-profit",
    "profit",
    "business-valuation",
    "cash-flow"
  ],
  "changelog": []
}