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EBITDA Calculator

The EBITDA Calculator calculates a company's earnings before interest, taxes, depreciat...

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How to Use This Tool

  1. Fill in Revenue, and Operating Expenses. Each control is labeled; you do not need to paste a JSON blob.
  2. Click "Calculate" to run the tool in your browser.
  3. Read the result below the form and copy it if you need it in another app.

Learn More About EBITDA Calculator

Understanding EBITDA

EBITDA is a measure of a company's operating performance. It strips out the effects of financing and accounting decisions such as interest, taxes, depreciation, and amortization. This provides a clearer picture of a company's core profitability.

EBITDA Formula

EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

Why Use EBITDA?

EBITDA is useful for:

  • Comparing Companies: It allows for easier comparison of companies with different capital structures or tax rates.
  • Analyzing Profitability: It provides a more accurate view of a company's operational profitability.
  • Valuation: It is often used in business valuation and financial modeling.

About

The EBITDA Calculator calculates a company's earnings before interest, taxes, depreciation, and amortization. It's a measure of a company's overall financial performance and profitability.

Examples

Valid EBITDA calculation inputs

Revenue, operating expenses
Input
{
  "net_income": 100000,
  "interest": 10000,
  "taxes": 20000,
  "depreciation": 15000,
  "amortization": 5000
}
Output
EBITDA: $90,000
($100,000 revenue - $10,000 expenses)

Another valid EBITDA calculation

Revenue, operating expenses
Input
{
  "net_income": 50000,
  "interest": 5000,
  "taxes": 10000,
  "depreciation": 7500,
  "amortization": 2500
}
Output
EBITDA: $45,000
($50,000 revenue - $5,000 expenses)

Use Cases

  • Analyzing a company's profitability and financial performance.
  • Comparing the EBITDA of different companies.
  • Evaluating investment opportunities.
  • Assessing a company's ability to repay debt.

Frequently Asked Questions