The EBITDA Calculator is a valuable tool designed to help you easily compute EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key performance indicator (KPI) that assesses a company’s operational profitability.

By inputting your operating profit along with amortization and depreciation expenses, you can gain insights into your business’s 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.

How to Use the EBITDA Calculator

To use the calculator, follow these steps:

  1. Enter the Operating Profit: The profit from your business operations before deducting interest and taxes.
  2. Input the Amortization Expense: The gradual write-off of intangible assets.
  3. Enter the Depreciation Expense: The reduction in value of tangible assets over time.
  4. Click the Calculate button to see your EBITDA.

Two Methods to Calculate EBITDA

EBITDA is a crucial indicator in financial analysis that assesses a company’s operational performance. The following methods provide different approaches to calculating EBITDA, depending on the available financial data.

Method 1: Add Back Depreciation and Amortization to Operating Profit

This method begins with the operating profit and adds back depreciation and amortization expenses.

Formula:

EBITDA = Operating Profit + Depreciation Expense + Amortization Expense

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

Steps:

  • Identify the Operating Profit from the income statement.
  • Add back the Depreciation Expense.
  • Add back the Amortization Expense.
  • The sum gives you the EBITDA.

Method 2: Calculate EBITDA from Net Income

This method starts from the net income and adjusts for interest, taxes, depreciation, and amortization.

Formula:

EBITDA = Net Income + Interest Expense + Tax Expense + Depreciation Expense + Amortization Expense

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

Steps:

  • Start with the Net Income.
  • Add back Interest Expense.
  • Add back Tax Expense.
  • Add back Depreciation Expense.
  • Add back Amortization Expense.
  • The result is your EBITDA.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

EBITDA is a financial metric used to evaluate a company’s operational performance by measuring its earnings before the impact of financial and accounting deductions.

It represents the profit generated from core business operations, excluding interest expenses, tax expenses, and non-cash charges such as depreciation and amortization. EBITDA is often used by investors and analysts as an indicator of a company’s profitability and ability to generate cash flow.

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