# EBITDA Calculator

URL: https://speedycalculator.com/calculators/finance/ebitda/
Last updated: 2026-10-25

> The EBITDA calculator works out earnings before interest, taxes, depreciation and amortization – from net income by adding back those items, or from operating profit – and the EBITDA margin.

## Inputs

- Net income
- Interest expense
- Taxes
- Depreciation
- Amortization
- Revenue

## Results

- EBIT
- EBITDA
- EBITDA margin

## Formula

```
EBITDA = net income + interest + taxes + depreciation + amortization
EBITDA = EBIT + depreciation + amortization
EBITDA margin = EBITDA ÷ revenue
```

## Explanation

EBITDA approximates operating cash earnings and is widely used in valuation (EV/EBITDA) and loan covenants. It ignores capital expenditure, so it can flatter capital-intensive businesses.

### How to use the EBITDA Calculator

- **Net income**
- **Interest expense**
- **Taxes**
- **Depreciation**
- **Amortization**
- **Revenue**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter net income, interest, taxes, depreciation, amortization and revenue.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterNet incomeAmount in your currencyInterest expenseAmount in your currencyTaxesAmount in your currencyDepreciationAmount in your currencyAmortizationAmount in your currencyRevenueAmount in your currency

### What each result means

- **EBIT** = [Net income] + [Interest expense] + [Taxes]
- **EBITDA** = [EBIT] + [Depreciation] + [Amortization]
- **EBITDA margin** = [EBITDA]÷[Revenue]×100

### Example values

How the main result changes when **Net income** changes and everything else stays at the example values above:

Net incomeEBITDA75,000215,000112,500252,500150,000290,000187,500327,500225,000365,000300,000440,000

## Worked example

Inputs — Net income: $150,000; Interest expense: $30,000; Taxes: $40,000; Depreciation: $60,000; Amortization: $10,000; Revenue: $1,000,000.

Results — EBIT = $220,000.00; **EBITDA = $290,000.00**; EBITDA margin = 29 %.

## FAQ

**What is EBITDA?**
Earnings before interest, taxes, depreciation and amortization.

**Why is EBITDA used?**
It compares operating performance independent of financing, taxes and accounting for assets.

**What are EBITDA's limitations?**
It ignores capital spending and working capital needs.

**What formula does the EBITDA Calculator use?**
EBITDA = net income + interest + taxes + depreciation + amortization.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)