EBITDA Calculator
EBITDA, EBIT, net income and margins.
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This EBITDA calculator walks down the income statement from revenue to net income. It shows EBITDA (earnings before interest, taxes, depreciation and amortization), EBIT, profit before tax and net profit, each with its margin, and an optional EV/EBITDA multiple if you know the company’s enterprise value. Works in any of eight currencies.
What is a EBITDA Calculator?
EBITDA stands for earnings before interest, taxes, depreciation and amortization. It is a measure of operating profit that strips out financing decisions (interest), tax rules and non-cash charges for the wear of assets (depreciation and amortization), so companies with different debt levels and asset bases can be compared.
Investors use EBITDA in valuation multiples such as EV/EBITDA, lenders use it to set debt limits, and owners use it to track operating performance. This EBITDA calculator shows EBITDA along with EBIT, pre-tax profit and net income, so you can see each layer of the income statement.
How does the EBITDA Calculator work?
Gross profit is revenue minus cost of goods sold. EBITDA is gross profit minus operating expenses that exclude depreciation. EBIT subtracts depreciation and amortization. Profit before tax subtracts interest, and net income subtracts tax at your rate. Each figure is also shown as a share of revenue.
How to use the EBITDA Calculator step by step
- Choose your currency.
- Enter revenue and cost of goods sold.
- Enter operating expenses excluding depreciation.
- Enter depreciation and amortization and interest.
- Enter the tax rate and, optionally, enterprise value.
- Read EBITDA, margins and the multiple.
EBITDA Calculator example with real numbers
A small manufacturer had $1 million of revenue, $550,000 of cost of goods sold, $250,000 of other operating costs, $60,000 of depreciation and $30,000 of interest.
| Example input | Value |
|---|---|
| Currency | US dollar ($) |
| Revenue | 1,000,000 |
| Cost of goods sold | 550,000 |
| Operating expenses (excluding depreciation) | 250,000 |
| Depreciation and amortization | 60,000 |
| Interest expense | 30,000 |
| Tax rate | 25% |
| Enterprise value (optional) | 1,500,000 |
| Example output | Value |
|---|---|
| EBITDA | $200,000 |
| Gross profit | $450,000 (45.0%) |
| EBITDA | $200,000 (20.0%) |
| EBIT (operating profit) | $140,000 (14.0%) |
| Profit before tax | $110,000 (11.0%) |
| Net income | $82,500 (8.3%) |
| EV/EBITDA | 7.50× |
| Interest coverage (EBIT ÷ interest) | 4.67× |
The EBITDA calculator shows $200,000 of EBITDA and EBIT of $140,000 (14.0%). At a $1.5 million enterprise value, EV/EBITDA is 7.50×.
Key features of this EBITDA Calculator
- EBITDA and EBIT
- Margins at each level
- Net income
- EV/EBITDA
- Interest coverage
Who should use the EBITDA Calculator?
Who is this EBITDA Calculator for?
- Small business owners
- Finance and accounting students
- Investors and analysts
- Founders preparing for funding
Practical use cases
- Tracking operating performance
- Preparing for a business sale
- Checking loan covenants
- Comparing companies
Key benefits
- Full walk: revenue to net income.
- Margins: every level.
- Valuation: EV/EBITDA.
- Private: runs in your browser.
Tips for better results
- Compare EBITDA margins only within an industry.
- Watch for ‘adjusted’ EBITDA that excludes recurring costs.
- Capital-heavy businesses need to check capex as well.
- Use EBITDA with cash flow, not instead of it.
Common mistakes to avoid
- Including depreciation in operating expenses and then subtracting it again.
- Treating EBITDA as cash flow.
- Comparing EBITDA across very different industries.
- Ignoring large adjustments in reported EBITDA.
Limitations of this EBITDA Calculator
- A simplified income statement.
- One tax rate applied to profit.
- Non-operating items are not separated.
EBITDA Calculator vs other ways to calculate
| Measure | Excludes |
|---|---|
| EBITDA | Interest, tax, depreciation, amortization |
| EBIT | Interest and tax |
| Profit before tax | Tax |
| Net income | Nothing |
To value a business by cash flows, use the DCF calculator. For a full ratio check, try the financial ratio calculator.
Privacy and data handling
This EBITDA Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
EBITDA Calculator FAQs
How do I calculate EBITDA?
Revenue minus cost of goods sold minus operating expenses, excluding depreciation and amortization. Or net income plus interest, taxes, depreciation and amortization.
What is a good EBITDA margin?
It varies by industry; software firms may exceed 30%, while retailers may be under 10%.
What is the difference between EBITDA and EBIT?
EBIT subtracts depreciation and amortization; EBITDA does not.
What is EV/EBITDA?
Enterprise value divided by EBITDA, a common valuation multiple.
Is EBITDA the same as cash flow?
No. It ignores capital spending, working capital changes, interest and tax.
Why do lenders use EBITDA?
To estimate a company’s ability to service debt, often through debt-to-EBITDA limits.
Related tools
Sources and references
We checked the method and the current figures used in this EBITDA Calculator against these official and primary sources:
- SEC EDGAR: Company filings
- Corporate Finance Institute: EBITDA margin
- SBA: Manage your business (finances)
- CFA Institute
Written and reviewed by the Qorico Team
