EBITDA Calculator
EBITDA = Net Income + Interest + Tax + D&A. Operating earnings before financing + non-cash items.
Result
EBITDA
$370
Margin: 24.7%.
- Net Income$200
- Interest$30
- Tax$60
- D&A$80
- EBIT$290
- EBITDA$370
- EBITDA margin24.67%
Step-by-step
- EBITDA = NI + Interest + Tax + D&A = 200 + 30 + 60 + 80 = $370.
How to use this calculator
- Get NI, interest, tax, D&A from income statement.
- Optional: revenue for margin calc.
About this calculator
EBITDA strips out financing decisions (interest), tax jurisdictions, and accounting policy (D&A) to expose pure operating performance. Useful for comparing companies cross-border or with different leverage. Critique: ignores CapEx, working capital — Buffett famously calls it "BS earnings." EBITDA margin > 15% is typical "healthy"; >25% is excellent. Used heavily in private equity (EV/EBITDA multiples for valuation).
Frequently asked
EBITDA adds back non-cash D&A. EBIT is operating income before interest + tax (after D&A).
Related calculators
Free Cash Flow (FCF)
FCF = EBIT(1−T) + D&A − CapEx − ΔNWC. Cash available to all capital providers.
WACC Calculator
WACC = (E/V)·Re + (D/V)·Rd·(1−T). Blended cost of capital weighted by debt + equity.
Return on Equity (ROE)
ROE = Net Income / Avg Shareholders' Equity. Profitability per dollar of equity.
Return on Assets (ROA)
ROA = Net Income / Avg Total Assets. Profitability per dollar of all assets.
Current Ratio
Current ratio = Current Assets / Current Liabilities. Liquidity benchmark.
Debt-to-Equity Ratio
D/E = Total Debt / Total Equity. Leverage relative to ownership.