EBITDA Calculator
Calculate EBITDA and EBIT from net income by adding back interest, taxes, depreciation and amortization, with an optional EBITDA margin.
Your inputs
Results
EBITDA
$80,000.00
- EBIT
- $70,000.00
- EBITDA margin
- 20%
✓Exact calculation — rounded only for display
What this calculator does
EBITDA approximates operating cash generation by removing financing, tax and non-cash charges. It is widely used in valuation and lending covenants.
Formula and method
Worked example
Calculated by this tool with its default inputs:
Inputs
- Net income: 50000 (any currency)
- Interest expense: 5000 (any currency)
- Income taxes: 15000 (any currency)
- Depreciation: 8000 (any currency)
- Amortization: 2000 (any currency)
- Revenue (optional, for margin): 400000 (any currency)
Results
- EBITDA: 80,000
- EBIT: 70,000
- EBITDA margin: 20%
How to read the results
EBITDA ignores capital spending and working capital needs, so it can flatter businesses with heavy reinvestment.
Assumptions and limitations
- EBITDA is not defined by accounting standards; definitions vary.
Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.
Questions
Why add back depreciation?
It is a non-cash accounting charge that spreads past capital spending over time.
Methodology and verification
- Result type
- Exact mathematical calculation (rounded only for display)
- Formula version
- 1.0
- Automated verification
- 2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
- Editorial review
- Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.
Privacy
Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy