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EBITDA Calculator

Calculate EBITDA and EBITDA margin from net income by adding back interest, taxes, depreciation, and amortization.

Net income (profit after all expenses and taxes)
Total interest expense for the period
Total income tax expense for the period
Depreciation of tangible assets for the period
Amortization of intangible assets for the period
Total revenue for EBITDA margin calculation

Results

EBITDA$0
EBITDA Margin0.00%

📖What is it?

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a widely used measure of core operating profitability. It strips out financing decisions (interest), tax environments (taxes), and non-cash accounting items (D&A) to show the raw earning power of the business.

🎯How to use

Enter net income plus the add-backs: interest expense, income tax expense, depreciation, and amortization. Enter total revenue to calculate the EBITDA margin (EBITDA as a % of revenue).

💡Example scenario

Net income $500k, interest $50k, taxes $150k, depreciation $80k, amortization $20k: EBITDA = $800k. On revenue of $2M, EBITDA margin = 40%.

🏆Pro tip

EBITDA is a non-GAAP metric and can be misleading for capital-intensive businesses where depreciation is a real economic cost. Warren Buffett famously criticizes its overuse. Always compare alongside free cash flow. Typical healthy EBITDA margins: software (25-40%+), retail (5-10%), manufacturing (10-20%).