Free calculator
EBITDA calculator
Build EBITDA up from net income: enter interest, taxes, depreciation and amortization from the income statement. You get EBITDA, EBIT and, with revenue, the EBITDA margin, with the arithmetic shown.
Income statement
The bottom line. A loss is negative.
Net of interest income, if you prefer.
Optional
For the EBITDA margin.
The EBITDA formula
The calculator’s example has $120,000 of net income. Adding back $15,000 of interest and $40,000 of income tax gives EBIT of $175,000; adding $30,000 of depreciation and $5,000 of amortization gives EBITDA of $210,000, a 21.0% margin on $1,000,000 of revenue.
Start from net income
SEC staff guidance says the “earnings” in EBIT and EBITDA means net income as presented in the statement of operations under GAAP, and that EBITDA used as a performance measure should be reconciled to net income. Building up from net income, as the calculator does, gives you that reconciliation line by line. Depreciation and amortization are usually in the cash flow statement if the income statement doesn’t show them separately.
What EBITDA leaves out
- Capital spending. Depreciation is added back, but the equipment still had to be bought.
- Working capital. Growth that ties cash up in receivables and inventory doesn’t show.
- Debt service. Interest is excluded, so it says nothing about whether a company can pay its lenders on its own.
For those, look at cash flow from operations and the leverage ratios on the financial ratios cheat sheet.
EBITDA: questions
- How do you calculate EBITDA?
- Start with net income and add back interest expense, income tax expense, depreciation and amortization. With $120,000 of net income, $15,000 of interest, $40,000 of taxes, $30,000 of depreciation and $5,000 of amortization, EBITDA is $210,000.
- What's the difference between EBIT and EBITDA?
- EBIT adds back only interest and taxes to net income. EBITDA also adds back depreciation and amortization, the non-cash charges that spread the cost of long-lived assets over time. Capital-heavy businesses often show a large gap between the two.
- What is the EBITDA margin?
- EBITDA divided by revenue. $210,000 of EBITDA on $1,000,000 of revenue is a 21.0% margin. Because it ignores how a company is financed and taxed, it is used to compare operating performance across companies.
- Is EBITDA a GAAP measure?
- No. It doesn't appear in U.S. GAAP financial statements, so a public company that reports it in an SEC filing is presenting a non-GAAP measure. SEC staff guidance says it should be reconciled to net income when used as a performance measure.
- What is adjusted EBITDA?
- EBITDA with further add-backs, such as stock-based compensation, restructuring costs or one-time items. SEC staff say measures calculated differently from EBIT and EBITDA as the SEC described them shouldn't carry those names, and suggest titles such as "Adjusted EBITDA." Read the reconciliation to see what was added back.
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Sources
Official documents read on November 5, 2026. Vendor facts are sourced on each listing.