EBITDA Calculator
Calculate EBITDA from net income or operating income (EBIT). Optionally add revenue to see margins and compare with a target EBITDA margin.
Results
EBITDA formulas
EBITDA = net income + net interest expense + income tax expense + depreciation + amortization. When operating income is known, the shorter bridge is EBITDA = EBIT + depreciation + amortization. A tax benefit or net interest income is entered as a negative amount so the bridge follows the statement.
With revenue, EBITDA margin = EBITDA ÷ revenue × 100% and EBIT margin = EBIT ÷ revenue × 100%. A target margin produces target EBITDA = revenue × target margin and the gap from calculated EBITDA.
Verified examples
| Inputs | EBIT | EBITDA and margin |
|---|---|---|
| $120,000 net income + $30,000 interest + $40,000 tax + $50,000 depreciation + $20,000 amortization; $1,000,000 revenue | $190,000 | $260,000; 26.00% EBITDA margin; 19.00% EBIT margin |
| $200,000 EBIT + $35,000 depreciation + $15,000 amortization; $1,250,000 revenue | $200,000 | $250,000; 20.00% EBITDA margin |
| −$50,000 net loss + $10,000 interest − $5,000 tax benefit + $30,000 depreciation + $10,000 amortization | −$45,000 | −$5,000; margins not calculated without revenue |
How to interpret EBITDA
EBITDA is a non-GAAP operating-performance measure before financing costs, income taxes and noncash depreciation and amortization. It can help compare operating scale across periods, but it is not cash flow: it ignores capital expenditures, working-capital changes, debt principal and several other cash uses.
Higher EBITDA or margin is not automatically better across unrelated industries. Compare consistent definitions, periods and peers. The result is unadjusted EBITDA; it does not add back restructuring, stock compensation, owner expenses, acquisitions or other management-defined adjustments.
Input limits and assumptions
- All monetary inputs must use the same currency, entity, period and reporting scope, with no more than two decimal places and magnitude no greater than 1,000,000,000,000.
- Net income, EBIT, net interest and income tax may be negative. Depreciation, amortization and revenue cannot be negative.
- Revenue is optional. Revenue of zero makes margins undefined; it does not change EBITDA.
- A target margin requires revenue, may range from 0% to 1,000% and assumes revenue and D&A remain unchanged.
- Use either the net-income bridge or the EBIT bridge, not both. The unused fields are ignored.
- This educational calculator does not determine accounting classification, adjusted EBITDA, covenant EBITDA, company value, taxes or investment suitability.
Reconcile every input to the same financial statements. EBITDA definitions used in lending, acquisitions and investor materials may contain contract-specific adjustments that this calculator intentionally excludes.
Frequently asked questions
Is EBITDA the same as operating cash flow?
No. Operating cash flow includes working-capital movements and other cash-flow adjustments. EBITDA does not subtract capital expenditures and should not be treated as cash available.
What is the difference between EBIT and EBITDA?
EBIT is earnings before interest and taxes. EBITDA adds depreciation and amortization back to EBIT, so the two measures differ by total D&A in this calculator.
Can EBITDA be negative?
Yes. If operating losses exceed depreciation and amortization add-backs, EBITDA remains negative. That is mathematically valid and should be interpreted with the underlying statements.
Related calculators
- Business Valuation Calculator — apply an EBITDA or other multiple after calculating the relevant measure.
- Free Cash Flow Calculator — subtract capital expenditures from operating cash flow.
- Margin Calculator — compare cost, price, profit and markup.
- Return on Assets Calculator — compare net income with average assets and DuPont components.