The EBITDA Calculator provides an efficient means to calculate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a critical metric for evaluating a company’s operational profitability.

Input operating profit, amortization, and depreciation expenses to assess financial performance.

EBITDA Calculator

EBITDA Calculator

Calculate your EBITDA by entering your operating profit, amortization, and depreciation expenses.

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Enter the operating profit from your income statement.
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Enter the amortization expense for the period.
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Enter the depreciation expense for the period.

Using the EBITDA Calculator

Follow these steps:

  1. Enter Operating Profit: Earnings from operations before interest and tax deductions.
  2. Input Amortization Expense: Write-off of intangible assets over time.
  3. Enter Depreciation Expense: Value reduction of tangible assets.
  4. Click Calculate to obtain EBITDA.

EBITDA Calculation Methods

EBITDA measures operational profitability and can be calculated via two distinct approaches based on available data.

Method 1: Operating Profit Adjustment

This method adjusts operating profit by adding depreciation and amortization.

Formula:

EBITDA = Operating Profit + Depreciation Expense + Amortization Expense
\( \text{EBITDA} = \text{Operating Profit} + \text{Depreciation Expense} + \text{Amortization Expense} \)

Procedure:

  • Obtain Operating Profit from the income statement.
  • Add Depreciation Expense.
  • Add Amortization Expense.
  • Total yields EBITDA.

Method 2: Net Income Adjustment

This method adjusts net income by adding back interest, taxes, depreciation, and amortization.

Formula:

EBITDA = Net Income + Interest Expense + Tax Expense + Depreciation Expense + Amortization Expense
\( \text{EBITDA} = \text{Net Income} + \text{Interest Expense} + \text{Tax Expense} + \text{Depreciation Expense} + \text{Amortization Expense} \)

Procedure:

  • Begin with Net Income.
  • Add Interest Expense.
  • Add Tax Expense.
  • Add Depreciation Expense.
  • Add Amortization Expense.
  • Sum provides EBITDA.

EBITDA Overview

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a financial metric that isolates operational profitability by excluding interest, taxes, and non-cash expenses like depreciation and amortization.

It reflects earnings from core operations, serving as a key indicator for investors and analysts to evaluate cash flow generation and profitability.

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