EBITDA Calculator

Calculate a company's operating performance using the detailed EBITDA formula.

Financial Inputs

Net Income ($) The bottom line profit after all expenses.

Interest Expense ($)

Taxes ($)

Depreciation ($)

Amortization ($)

Total Revenue (Optional) Enter revenue to calculate EBITDA Margin %.

Calculated EBITDA:

EBITDA Margin --

Net Income --

What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a widely used measure of a company's core operational efficiency and profitability.

Why Use It?

Net Income (the bottom line) can be heavily influenced by accounting decisions, tax environments, and financing structures. EBITDA strips these away to reveal how much cash profit the core business operations generate.

Interest: Removed to ignore the company's debt structure.
Taxes: Removed to ignore the tax jurisdiction effects.
Depreciation & Amortization: Removed because they are non-cash accounting expenses.

The Formula

The "Bottom-Up" method used by this calculator is:

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

EBITDA Margin

This ratio measures how much EBITDA a company generates for every dollar of revenue. It is useful for comparing companies of different sizes.

EBITDA Margin = (EBITDA / Total Revenue) Ã— 100%

A "good" EBITDA margin varies by industry, but typically anything above 10-15% is considered healthy, with software companies often exceeding 40%.