How to use this tool
- Use net income, interest expense, tax expense, depreciation and amortization from the same reporting period.
- Use the same currency for every input. Enter depreciation and amortization as one combined amount.
- Calculate the reconciliation and check that each add-back was already deducted in the starting net income.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Net income | Numeric value. Unit: money. | 20000 |
| Interest expense | Numeric value. Unit: money. Zero or positive. | 2000 |
| Tax expense | Numeric value. Unit: money. Zero or positive. | 3000 |
| Depreciation and amortization | Numeric value. Unit: money. Zero or positive. | 5000 |
Result for these sample inputs
30000 currency units
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
EBITDA = net income + interest + taxes + depreciation and amortization.
Net income of 20,000 plus interest 2,000, taxes 3,000 and depreciation/amortization 5,000 gives EBITDA of 30,000. Adding the same expense twice would overstate the result.
Understanding your result
EBITDA is an earnings measure, not cash in the bank. It does not account for working-capital movements, capital expenditure or principal repayments. The calculator uses a simple reconciliation; adjusted EBITDA may include other separately justified items.
What to keep in mind
All amounts must describe the same entity, period and currency. This form accepts nonnegative expense add-backs and signed net income; it does not model tax benefits or custom adjustments. Review accounting classifications separately.
Common questions
Is EBITDA operating cash flow?
No. Noncash adjustments, working-capital changes and other cash-flow items make these different measures.
Can I start from operating profit instead?
This form starts from net income. Starting from operating profit while adding interest and taxes again would mix reconciliation methods.
Methodology maintained by ClarityKit. How these tools are built and checked.