Gross Profit Calculator
Gross profit & margin.
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EBITDA Calculator
Add interest, taxes, depreciation and amortization to net income.
EBITDA
—
Operating earnings.
| Net income | — |
|---|---|
| + Interest | — |
| + Taxes | — |
| + D&A | — |
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How the EBITDA Calculator Works
EBITDA — earnings before interest, taxes, depreciation and amortization — strips out financing and accounting choices to show a company’s core operating profitability. Start with net income and add back the interest, taxes, depreciation and amortization: $100k + $20k + $30k + $50k = $200k.
Because it ignores capital structure and non-cash charges, EBITDA lets you compare the operating performance of different companies more directly. Critics note it can overstate health by hiding real capital costs.
EBITDA = net income + interest + taxes + depreciation + amortization
Frequently Asked Questions
What is EBITDA?
Earnings before interest, taxes, depreciation and amortization — a measure of core operating profitability.
How do you calculate EBITDA?
Add interest, taxes, depreciation and amortization back to net income.
Why use EBITDA?
It removes financing and accounting differences so operating performance can be compared across companies. It can, however, mask real capital costs.
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