Estimate EBITDA, EBIT, and EBITDA margin using revenue, COGS, operating expenses, depreciation, and amortization for financial analysis.
Compute EBITDA from Net Income, Operating Income (EBIT), or Revenue and Expenses with optional margin.
Or equivalently:
EBITDA = EBIT + Depreciation + Amortization
If a company reports:
– Revenue = $5
– Cost of Goods Sold (COGS) = $5
– Operating Expenses = $33
– Depreciation = $3
– Amortization = $55
Then:
EBIT = 5 − 5 − 33 = −33
EBITDA = −33 + 3 + 55 = 25
EBITDA Margin = (EBITDA ÷ Revenue) × 100
= (25 ÷ 3) × 100 = 833.33%
Follow these steps to calculate EBITDA from revenue, expenses, and non-cash charges to assess your company’s operating performance.
Select “Start from Revenue & Expenses” to calculate EBITDA directly from income and cost data. Other options include starting from Net Income or Operating Income (EBIT) depending on what financial data you have available.
Type the total company revenue for the period (e.g., 50000). Use whole numbers or decimals without symbols like commas or currency signs.
Enter the direct costs of producing goods or services (e.g., materials and labor). Make sure this excludes overhead or administrative costs.
Input expenses such as rent, salaries, or utilities. Do not include depreciation or amortization here—those are added separately below.
Type the non-cash expenses from your income statement. These represent the wear and tear on assets and should be entered as positive numbers.
The calculator will display EBIT (Operating Income), EBITDA, and EBITDA Margin (%) automatically once all inputs are complete.
It returns EBIT (operating income), EBITDA, and EBITDA margin. Formulas (plain text): EBIT = Revenue − COGS − Operating Expenses (excluding D&A). EBITDA = EBIT + Depreciation + Amortization. EBITDA margin = EBITDA ÷ Total Revenue (reported as a percentage).
To start from revenue and expenses, provide Revenue, COGS, Operating Expenses (excluding depreciation and amortization), Depreciation, and Amortization. Total Revenue is optional but required for EBITDA margin. If you instead start from EBIT, enter EBIT plus D&A. If you start from Net Income, enter Net Income, add back Interest and Taxes to get EBIT, then add D&A.
All methods converge on the same EBITDA definition: “earnings before interest, taxes, depreciation, and amortization.” From Net Income: EBIT = Net Income + Interest + Taxes; then EBITDA = EBIT + D&A. From EBIT: EBITDA = EBIT + D&A. From Revenue & Expenses: EBIT = Revenue − COGS − Operating Expenses (excl. D&A); then EBITDA = EBIT + D&A.
No. The tool reports a plain EBITDA subtotal. “Adjusted EBITDA” is an alternative performance measure defined by management; if used, authoritative guidance requires clear definition and reconciliation to the closest standard measure (i.e., EBITDA as defined above).
Currency outputs use the input currency (ISO 4217 code if specified). Values and percentages are rounded using round-half-even to two decimals. Negative inputs/outputs are allowed; if Total Revenue ≤ 0, EBITDA margin is not shown to avoid division by zero or non-meaningful percentages. Ensure Operating Expenses exclude D&A to avoid double-adding when computing EBITDA.
The calculator implements standard subtotals used by regulators and professional bodies: EBIT (operating income) is derived either top-down (Revenue − COGS − Operating Expenses, excluding D&A) or bottom-up (Net Income + Interest + Taxes).
EBITDA is computed as EBIT + Depreciation + Amortization. EBITDA margin is EBITDA divided by Total Revenue and expressed as a percent. Currency handling follows ISO 4217 codes when provided; no unit conversions are performed. Numeric outputs use round-half-even (banker’s rounding) to two decimal places for both currency and percentage displays, following NIST rounding guidance. If Operating Expenses provided by the user already exclude D&A, we add back D&A only once; if they include D&A, users should subtract D&A from Operating Expenses to align with the stated formulas.
Division by zero and non-positive revenue suppress the margin. These definitions align with SEC C&DI for EBIT/EBITDA terminology and with IASB/ESMA materials noting EBITDA as a commonly used (but non-GAAP/IFRS) subtotal.