EBITDA Calculator

1. Enter Net Income — Start with your company's bottom-line earnings (profit after all expenses, including taxes and interest). You can find this on your income statement.

2. Add Interest Expense — Enter the total interest paid on debt during the period. This is typically found in the non-operating expenses section of the income statement.

3. Add Taxes — Input the income tax expense for the period. This includes federal, state, and local income taxes.

4. Add Depreciation — Enter the depreciation expense, which accounts for the decline in value of physical assets like equipment, buildings, and vehicles.

5. Add Amortization — Input the amortization expense for intangible assets such as patents, trademarks, and goodwill.

6. Enter Revenue (Optional) — If you'd like to calculate EBITDA margin, enter your total revenue. The margin shows EBITDA as a percentage of revenue, useful for comparing companies of different sizes.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a widely used measure of a company's overall financial performance and operating profitability.

By stripping out non-operating expenses (interest and taxes) and non-cash charges (depreciation and amortization), EBITDA provides a clearer picture of a company's operational cash flow and core business performance.

Investors, analysts, and business owners use EBITDA to compare profitability between companies and industries, evaluate potential acquisitions, assess a company's ability to service debt, and determine business valuation multiples.