EBITDA Calculator

Add back interest, taxes, depreciation and amortization to your net income to see what your core operations actually earn. Get EBITDA, EBIT, and EBITDA margin for any period.

Quick answer

EBITDA = net income + interest + taxes + depreciation + amortization. Example: $60,000 net income with $8,000 interest, $15,000 taxes, $20,000 depreciation and $5,000 amortization gives $108,000 EBITDA.

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EBITDA
$108,000.00
21.6% EBITDA margin on $500,000.00 revenue.
EBIT (operating profit)
$83,000.00
EBITDA margin
21.6%
Use it carefully: EBITDA flatters businesses with heavy debt or equipment. It's useful for comparing operations, not for knowing what lands in your bank account.
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How to calculate EBITDA

Start with net income — the profit left after everything. Add back interest (a financing choice), taxes (a jurisdiction choice), and depreciation and amortization (accounting entries, not cash leaving this period). What remains is EBITDA: the earning power of the operations themselves.

Frequently asked

EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. It strips out financing and accounting effects so you can see how much cash the core business operations produce.

EBITDA = net income + interest + taxes + depreciation + amortization. You can also work from operating profit: EBITDA = operating profit (EBIT) + depreciation + amortization.

EBITDA margin is EBITDA ÷ revenue. Small service businesses often run 10–20%. Software can exceed 30%. Retail and food are usually below 10%. Compare within your own industry, not across industries.

No. EBITDA ignores interest, tax, and the cost of wearing out equipment. A business can show healthy EBITDA and still lose money after debt payments and asset replacement.

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Last reviewed: 2026-09-18