EBITDA Calculator

This free EBITDA calculator determines an organization's earnings before interest, taxes, depreciation and amortization. You can also use it to estimate an organization's EBITDA margin.

To calculate the EBITDA for an organization, simply input all the relevant information in the form below and click on the "Calculate" button.

EBITDA Calculator

 


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What is EBITDA, EBIT, and EBITDA Margin?

Earnings before interest, tax, depreciation, and amortization (EBITDA) is a measurement that financial analysts use to determine the strength of an organization's operating performance. Essentially, it gives an indication of a company's earnings before it paid any interest and taxes, as determined by adding back amortization and depreciation.

The formula for EBITDA is:

EBITDA = EBIT + Depreciation + Amortization

Earnings before interest and taxes (EBIT) is a measurement that is commonly employed in accounting and finance as an indicator of a company's profit. It includes all expenses except interest and any income tax expenses. As such, it is the difference between operating revenues and operating expenses.

The formula for EBIT is:

EBITDA = Revenue − Expenses

EBITDA margin is a measurement of an organization's earnings before interest, taxes, depreciation, and amortization as a proportion of the total revenue that it earned.

EBITDA provides an indication of how much cash a company earned, while EBITDA margin indicates how much cash an organization generated in a year in relation to its total sales income.

The formula for EBITDA margin is:

EBITDA Margin = EBITDA / Total Revenue

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