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EBITDA Calculator

Calculate EBITDA from revenue, operating expenses, depreciation and amortization to estimate operating profitability.

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Overview

Use this EBITDA Calculator to estimate earnings before interest, taxes, depreciation and amortization from your revenue, operating expenses, depreciation and amortization figures. It can help you compare operating performance across periods or businesses using a simple profitability measure.

How it works

The calculator first estimates EBIT by subtracting operating expenses, depreciation and amortization from revenue. It then adds depreciation and amortization back to EBIT to get EBITDA. EBITDA margin is calculated by dividing EBITDA by revenue and expressing the result as a percentage. This gives a quick view of operating profitability before financing, tax and non-cash charges.

How to use this calculator

  1. 1Enter your total revenue for the period.
  2. 2Add operating expenses excluding interest, taxes, depreciation and amortization.
  3. 3Enter depreciation expense.
  4. 4Enter amortization expense.
  5. 5Review the calculated EBITDA, EBIT and EBITDA margin.

Example Calculation

Revenue

$500,000

Operating Expenses

$300,000

Depreciation

$20,000

Amortization

$10,000

EBITDA

$200,000

With revenue of $500,000, operating expenses of $300,000, depreciation of $20,000 and amortization of $10,000, the estimated EBIT is $170,000, EBITDA is $200,000, and EBITDA margin is 40.0%.

Frequently asked questions

What does this EBITDA Calculator estimate?

It estimates EBITDA, EBIT and EBITDA margin using your revenue, operating expenses, depreciation and amortization figures.

What is EBITDA?

EBITDA stands for earnings before interest, taxes, depreciation and amortization. It is often used as a simple measure of operating performance.

What expenses should be included in operating expenses?

Include normal operating costs such as wages, rent, utilities and overheads. Exclude interest, taxes, depreciation and amortization if you enter them separately.

Why is EBITDA different from net profit?

EBITDA excludes interest, taxes, depreciation and amortization, while net profit usually includes these and may also include other non-operating items.

What does EBITDA margin show?

EBITDA margin shows EBITDA as a percentage of revenue, which helps compare profitability across periods or businesses of different sizes.

Can EBITDA be negative?

Yes. If operating costs are high relative to revenue, EBITDA can be negative, indicating weak operating performance before financing and tax costs.

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Assumptions and warnings

Assumptions

  • All figures are for the same accounting period.
  • Operating expenses exclude interest, taxes, depreciation and amortization unless entered separately.
  • Results are simplified estimates for quick analysis and comparison.
  • The calculator does not adjust for non-recurring, unusual or one-off items.

Warnings

  • This calculator provides an estimate only and is not accounting, tax or financial advice.
  • Check your financial statements and accounting treatment before relying on the result for business decisions.