Business

EBITDA Calculator

Reconcile net income to earnings before interest, taxes, depreciation and amortization.

Use a consistent reporting periodCheck the calculation below
Business dashboard
Business dashboard

Use figures from the same reporting period.

See the method

Enter your business figures

Runs on your device

Your key metric

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Use net income, interest expense, tax expense, depreciation and amortization from the same reporting period.
  2. Use the same currency for every input. Enter depreciation and amortization as one combined amount.
  3. 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.

InputFormat and unitsSample
Net incomeNumeric value. Unit: money.20000
Interest expenseNumeric value. Unit: money. Zero or positive.2000
Tax expenseNumeric value. Unit: money. Zero or positive.3000
Depreciation and amortizationNumeric 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.

A WORKED EXAMPLE

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.