Free tool
EBITDA calculator
Start with net income. Add back interest, taxes, depreciation and amortization. See your EBITDA, your EBIT and your EBITDA margin.
Prefer to talk it through? Take the free books check or contact us.
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How it works
How it works
EBITDA stands for earnings before interest, taxes, depreciation and amortization. Start with net income from your profit and loss statement and add back the four items. Add back only the part that was subtracted in the period.
EBITDA is a rough view of operating earnings. It does not show cash, because it ignores equipment purchases, loan principal and changes in inventory and receivables. Nothing you type is sent or saved.
FAQ
About this calculator
What is EBITDA?
Earnings before interest, taxes, depreciation and amortization. It adds those four items back to net income to show operating earnings before financing and accounting choices.
How do I calculate it?
Start with net income and add interest, income taxes, depreciation and amortization. The calculator also shows EBIT, which is net income plus interest and taxes.
Is EBITDA the same as cash flow?
No. It ignores equipment purchases, debt principal, changes in inventory and receivables, and owner pay. It is useful for comparing businesses, not for knowing how much cash is left.
Do lenders and buyers use it?
Often as a starting point. Small business buyers frequently adjust it for owner pay and one-time items, so your figure may differ from theirs.
Where do I find the inputs?
On your profit and loss statement and your depreciation schedule. If your books are behind, fix that first.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Read your numbers first with our guide to reading a profit and loss statement, build the depreciation line with the depreciation calculator, and check your break-even point. More free tools: Cap rate calculator, Cash-on-cash return calculator, Debt payoff calculator, or see all free tools.
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