Calculate EBITDA and the EBITDA margin from net profit or from revenue and operating costs. Free.
Enter the net profit to start.
NinjaFunction's EBITDA Calculator finds earnings before interest, tax, depreciation and amortisation in two ways: by adding back those items to net profit, or by subtracting cost of goods and operating expenses from revenue. Add revenue to see the EBITDA margin. Your figures never leave your browser.
| Line | Amount |
|---|---|
| Revenue | 1,000 |
| Cost of goods sold | 400 |
| Operating expenses (without depreciation) | 300 |
| EBITDA | 300 |
| Depreciation and amortisation | 50 |
| Interest | 20 |
| Tax | 30 |
| Net profit | 200 |
From the top: 1,000 revenue minus 400 of goods and 300 of operating expenses leaves EBITDA of 300, a margin of 30%.
From the bottom: start with the net profit of 200 and add back what sits between EBITDA and the bottom line. Interest of 20, tax of 30, and depreciation and amortisation of 50 give 200 + 20 + 30 + 50 = 300. Both routes meet at the same figure, which is a useful check on your numbers.
Earnings Before Interest, Taxes, Depreciation and Amortisation. It is a rough measure of how much a business earns from its normal operations before financing choices, tax and accounting write-downs.
Starting from net profit: EBITDA = Net profit + Interest + Tax + Depreciation + Amortisation. Starting from the top of the income statement: EBITDA = Revenue − Cost of goods sold − Operating expenses, where those costs leave out depreciation and amortisation.
If the income statement has other items such as one-off gains, interest income or exceptional costs, the two routes will not match. The net profit route adds back only the four items, so anything else stays in. Decide which items you want in and be consistent.
There is no single answer. Software companies often show 20% to 40% or more, supermarkets a fraction of that. Compare with similar companies and with the same business in earlier years.
No. It ignores the money spent on equipment (capital expenditure), changes in stock and what customers owe you, and interest and tax actually paid. A company can show healthy EBITDA and still run out of cash.
Not under IFRS or US GAAP. It is a measure companies calculate themselves, which is why two firms can define it slightly differently. Lenders and buyers use it widely all the same.