How to Calculate EBITDA

What is EBITDA?

EBITDA measures core operating profitability by stripping out financing decisions and accounting choices, making it useful for comparing businesses across industries.

Formula

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

EBITDA: Earnings before interest, taxes, depreciation, amortization (Currency)

Step-by-Step Guide

1EBITDA = Revenue - COGS - Operating expenses + D&A
2EBITDA margin = EBITDA / Revenue x 100
3EV/EBITDA multiple used to value and compare companies

Worked Examples

Input

$5M revenue, $2M COGS, $1M opex, $200K D&A

Result

EBITDA = $2.2M, margin = 44% - strong for a software business

Frequently Asked Questions

What is Ebitda Calc?

EBITDA measures core operating profitability by stripping out financing decisions and accounting choices, making it useful for comparing businesses across industries. Use this calculator for accurate, instant results.

How accurate is the Ebitda Calc calculator?

The calculator uses the standard published formula for ebitda calc. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Ebitda Calc calculator use?

This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.

What formula does the Ebitda Calc calculator use?

The core formula is: EBITDA = Revenue - COGS - Operating expenses + D&A. Each step in the calculation is shown so you can verify the result manually.

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