How to use this tool
- Enter net income, interest expense, tax expense, depreciation and amortization.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
The method, explained
EBITDA = net income + interest + taxes + depreciation and amortization.
Using net income = 20000 money, interest expense = 2000 money, tax expense = 3000 money, depreciation and amortization = 5000 money, the result is 30000 currency. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
Simplified reconciliation; unusual adjustments and accounting classifications require separate review. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.
Common questions
Which inputs does this calculation need?
Reconcile net income to earnings before interest, taxes, depreciation and amortization. Enter net income in money, interest expense in money, tax expense in money, depreciation and amortization in money. The filled example is editable and is not a saved personal record.
How should I interpret the result?
Simplified reconciliation; unusual adjustments and accounting classifications require separate review. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.
Methodology maintained by ClarityKit. How these tools are built and checked.