EBITDA Calculator

Calculate EBITDA and EBITDA margin from an income statement.

Revenue	$1,000,000
Net income	$120,000
Interest expense	$20,000
Income taxes	$40,000
Depreciation and amortisation	$60,000

Revenue

Net income

Interest expense

Income taxes

Depreciation and amortisation

EBITDA

$240,000

EBITDA margin 24%; EBIT $180,000.

Building up from net income

Net income$120,000
+ Interest + tax = EBIT$180,000
+ D&A = EBITDA$240,000

About the EBITDA Calculator

Enter revenue, net income, interest, income taxes, and depreciation and amortisation from the income statement. The calculator gives EBITDA, EBIT and the EBITDA margin.

EBITDA (earnings before interest, taxes, depreciation and amortisation) adds back financing costs, taxes and non-cash charges to net income. It's used to compare operating performance and in valuation multiples. It isn't cash flow: it ignores capital spending and working capital.

The formula

EBITDA = net income + interest + taxes + depreciation + amortisation

Worked example

Revenue 1,000,000; net income 120,000; interest 20,000; taxes 40,000; D&A 60,000

EBIT = 120,000 + 20,000 + 40,000 = 180,000
EBITDA = 180,000 + 60,000 = 240,000
EBITDA margin: 24%

Questions people ask

Is EBITDA a GAAP/IFRS measure?

No, it's a non-GAAP metric; companies define adjustments differently.

What's a good EBITDA margin?

Varies widely: 10–15% is common; software can exceed 30%.

What is EV/EBITDA?

Enterprise value divided by EBITDA, a common valuation multiple for comparing companies.