EBITDA Calculator – Easily Calculate Your EBITDA Online
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a widely used financial metric to understand a company’s operating profitability. Use the calculator below to quickly compute EBITDA based on your business numbers.
EBITDA Calculator
What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It provides a clearer picture of a company's operational performance by removing the impact of financing decisions, government taxes, and non-cash expenses.
EBITDA Formula
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization
Alternatively:
EBITDA = Operating Profit (EBIT) + Depreciation + Amortization
Why is EBITDA Important?
- Helps compare companies regardless of capital structure
- Shows core operating profitability
- Used widely by investors, lenders, and analysts
- Removes non-cash expenses for clearer insights
Example of EBITDA Calculation
Example:
Net Income = ₹5,00,000
Interest = ₹50,000
Taxes = ₹1,00,000
Depreciation = ₹75,000
Amortization = ₹25,000
EBITDA = 5,00,000 + 50,000 + 1,00,000 + 75,000 + 25,000 = ₹7,50,000
Frequently Asked Questions
Is EBITDA the same as net profit?
No. Net profit includes interest, taxes, depreciation, and amortization. EBITDA excludes them.
Is a higher EBITDA better?
Generally, yes—higher EBITDA indicates better operational profitability. But context matters depending on the industry.
Is EBITDA used for valuation?
Yes. Investors often use EBITDA multiples to determine a company’s valuation.