EBITDA CALCULATOR

EBITDA Calculator — Earnings Before Interest, Taxes, Depreciation & Amortization

Free EBITDA calculator for US businesses. Enter your income statement figures to calculate EBITDA, Adjusted EBITDA, EBIT, net income, and full profit margins — with a complete bridge from Revenue to Net Income.

1. Income Statement Data

Total Revenue ($) Total sales or revenue for the period.

Cost of Goods Sold (COGS) ($) Direct costs attributable to production or delivery.

Operating Expenses (SG&A, R&D) ($) Selling, general, administrative, R&D, and other operating costs.

Depreciation Expense ($)

Amortization Expense ($)

2. Below the EBITDA Line

Interest Expense ($)

Income Tax Expense ($)

Other Non-Operating Income ($) Interest income, gains on asset sales, etc.

Extraordinary Loss ($) Enter as a positive number. Deducted from net income.

3. EBITDA Adjustments (Add-Backs)

Stock-Based Compensation ($)

Restructuring Costs ($)

Goodwill Impairment ($)

Other One-Time Add-Backs ($)

4. Reference & Notes

Notes

Reference Number

EBITDA ANALYSIS

Earnings Before Interest, Taxes, D&A

Reference: EBITDA-2026-001

Date:

Revenue $1,000,000.00

Gross Profit $600,000.00

EBITDA (Reported) $380,000.00

Adjusted EBITDA $380,000.00

                        EBIT
                        $300,000.00
                    

EBITDA Margin 38.0%

Gross Margin 60.0%

Net Income $225,000.00

Income Statement Bridge

Revenue $1,000,000.00

COGS −$400,000.00

Gross Profit $600,000.00

Operating Expenses −$300,000.00

EBITDA (Reported) $380,000.00

Total Add-Backs +$0.00

Adjusted EBITDA $380,000.00

D&A −$80,000.00

EBIT $300,000.00

Interest + Tax −$75,000.00

Other Income +$0.00

Extraordinary Loss −$0.00

Net Income $225,000.00

Key Profit Margins

Gross Margin 60.0%

EBITDA Margin 38.0%

Operating Margin (EBIT) 30.0%

                            Net Profit Margin
                            22.5%
                        

EBITDA Formula

EBITDA = Revenue − COGS − Operating Expenses + D&A

$1,000,000.00 − $400,000.00 − $300,000.00 + $80,000.00 = $380,000.00

Your Adjusted EBITDA is $380,000.00 with a margin of 38.0%.

Notes

EBITDA calculation for financial analysis

This calculation is for informational and educational purposes. EBITDA and Adjusted EBITDA are non-GAAP measures; definitions vary by company and industry. Consult a licensed accountant or financial professional for reporting, valuation, or tax decisions.

Prepared By

Date

GUIDE

How to Use This EBITDA Calculator

This free EBITDA calculator takes your income statement inputs and computes EBITDA, Adjusted EBITDA, EBIT, net income, and four profit margins — with a full bridge from Revenue to Net Income. Use it to benchmark operating performance, prepare a business valuation, or quickly screen targets using an EBITDA multiple. For capital-project decisions, pair it with our business ROI calculator.

Enter Income Statement

Enter revenue, COGS, operating expenses, depreciation, and amortization.

Add Below-Line Items

Enter interest expense, income tax, other income, and any extraordinary loss.

Enter Adjustments

Add stock-based comp, restructuring, goodwill impairment, and other one-time add-backs.

Review the Bridge

Review the full income statement bridge and all four profit margins at once.

Save, Print or Export

Save a draft in your browser, print results, or download a PDF for your records.

EBITDA EDUCATION

What Does an EBITDA Calculator Calculate?

An EBITDA calculator — sometimes called an adjusted EBITDA calculator or operating profit calculator — converts standard income-statement inputs into EBITDA and several companion metrics. EBITDA isolates a company's core operating profitability before the effects of financing, taxes, and non-cash charges.

Key EBITDA calculations

Gross Profit: Revenue − Cost of Goods Sold.
EBITDA (Reported): Revenue − COGS − Operating Expenses + D&A. Or equivalently: Net Income + Interest + Taxes + D&A.
Adjusted EBITDA: EBITDA plus one-time or non-cash add-backs (stock comp, restructuring, goodwill impairment, other).
EBIT: EBITDA − Depreciation − Amortization. Commonly called Operating Income.
Net Income: EBIT − Interest − Taxes + Other Income − Extraordinary Loss.
EBITDA Margin: EBITDA ÷ Revenue × 100.
Adjusted EBITDA Margin: Adjusted EBITDA ÷ Revenue × 100.
Operating Margin (EBIT): EBIT ÷ Revenue × 100.
Net Profit Margin: Net Income ÷ Revenue × 100.

Who can use this EBITDA calculator?

Business Owners: Understand true operating profitability before financing and tax effects.
Investors and Analysts: Compare companies across different capital structures.
M&A and Investment Bankers: Prepare valuation multiples and normalized EBITDA for deal models.
Lenders and Credit Analysts: Assess debt-service capacity using Adjusted EBITDA.
Accountants and CFOs: Build a quick income statement bridge for internal or board reporting.

METHODOLOGY

EBITDA Calculator Methodology

MoneyTool uses standard income statement construction used by accountants and analysts. The calculator is transparent about what each metric does and does not capture.

1. Gross Profit and EBITDA (Reported)

Gross Profit = Revenue − COGS

EBITDA (Reported) = Gross Profit − Operating Expenses + Depreciation + Amortization

2. Adjusted EBITDA

Total Add-Backs = Stock Comp + Restructuring + Goodwill Impairment + Other Adjustments

Adjusted EBITDA = EBITDA (Reported) + Total Add-Backs

These add-backs are commonly used in lending, valuation, and covenant analysis to normalize non-recurring or non-cash items.

3. EBIT

EBIT = EBITDA (Reported) − Depreciation − Amortization

EBIT equals Operating Income for a pure operating P&L with no non-operating items above the line.

4. Net Income

Net Income = EBIT − Interest − Taxes + Other Income − Extraordinary Loss

Other income and extraordinary losses are reported as positive amounts; extraordinary losses reduce net income.

5. Margins

All margins are calculated as line item ÷ Revenue × 100: Gross Margin, EBITDA Margin, Operating Margin (EBIT), and Net Profit Margin.

Important assumptions

Inputs are treated as reported for a single period (quarter or year).
Extraordinary losses are treated as deductions from net income.
Add-backs are treated as pure additions to EBITDA (no partial-year proration).
No deferred taxes, minority interest, or discontinued operations are modeled.
EBITDA and Adjusted EBITDA are non-GAAP measures; definitions vary widely.
Not a substitute for GAAP financial statements or professional accounting advice.

E-E-A-T & SOURCES

EBITDA Information, Sources & Editorial Review

MoneyTool separates calculation results from financial education and personalized planning. The calculator uses standard income statement formulas, while external accounting and valuation guidance should be verified with authoritative sources.

Author and editorial responsibility

Methodology reviewed by the MoneyTool Finance Expert Team, a group of accountants, CPAs, and personal-finance analysts who maintain MoneyTool's calculator library and financial education content.

Last reviewed: September 2026 | Standard EBITDA and Adjusted EBITDA construction

Next review: When calculation logic, supported inputs, or relevant guidance changes.

Authoritative U.S. accounting and financial reporting resources

U.S. Securities and Exchange Commission (SEC) — Non-GAAP Measures: SEC Regulation G (Non-GAAP Financial Measures) governs how public companies may present EBITDA and Adjusted EBITDA.
SEC — Investor.gov: SEC Investor.gov provides investor education on reading financial statements and evaluating profitability metrics.
Financial Accounting Standards Board (FASB): FASB is the authoritative US source for GAAP accounting standards, including depreciation and amortization.
U.S. Small Business Administration (SBA): SBA Manage Your Business covers financial management, financial statements, and performance analysis for small businesses.
Internal Revenue Service (IRS) — Depreciation & Amortization: IRS Publication 946 is the official US guide to depreciation and amortization for tax purposes.
Financial Industry Regulatory Authority (FINRA): FINRA Investor Education offers practical guidance on reading financial statements and understanding company profitability.
Federal Trade Commission (FTC) — Business Guidance: FTC Business Guidance covers advertising, disclosure, and fair business practice rules that affect financial reporting.
Consumer Financial Protection Bureau (CFPB): CFPB Consumer Tools provides consumer-facing financial education that pairs with business finance learning.

External resources are provided for education and verification. MoneyTool is not affiliated with or endorsed by the SEC, FASB, SBA, IRS, FINRA, FTC, or CFPB.

BEST PRACTICES

Tips for EBITDA Analysis

EBITDA is a starting point, not a complete financial picture. Pair it with cash flow, capital expenditure, and working-capital analysis before drawing conclusions.

Use Consistent Definitions

Apply the same EBITDA definition when comparing periods, companies, or industries.

Compare Industry Peers

Compare EBITDA margins against industry peers — capital intensity drives wide variation.

Normalize One-Time Items

Remove genuinely one-time costs, but avoid aggressive add-backs that flatter profitability.

Watch CapEx

EBITDA ignores capital expenditures. For capital-intensive businesses, EBITDA overstates cash generation.

Track Quarterly Trends

Quarter-over-quarter EBITDA trends often reveal more than a single-period number.

Consult a Professional

For valuation, tax, or reporting purposes, consult a CPA or financial advisor.

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LEARNING CENTER

Learn More About EBITDA and Financial Analysis

Continue learning about EBITDA, financial ratios, and income statement analysis.

EBITDA Guide

What EBITDA is, how it is calculated, uses, and limitations.

Financial Ratios Explained

Key financial ratios and how to use them for business analysis.

Income Statement Analysis

How to read and analyze income statements effectively.

FAQ

Frequently Asked Questions About EBITDA

What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's operating profitability before financing, tax, and non-cash charges are applied.

How is EBITDA calculated?

EBITDA = Revenue − Cost of Goods Sold − Operating Expenses + Depreciation + Amortization. Equivalently, EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization.

What is the difference between EBITDA and Adjusted EBITDA?

Adjusted EBITDA starts with EBITDA and adds back non-recurring or non-cash items such as stock-based compensation, restructuring costs, and goodwill impairment. Lenders and buyers often use Adjusted EBITDA in valuation and debt-covenant analysis.

What is a good EBITDA margin?

Good EBITDA margins vary widely by industry. Software and asset-light businesses often run 25–40%+; manufacturing, retail, and capital-intensive businesses may operate at 8–20%. Compare against industry peers, not a single universal benchmark.

Why is EBITDA useful for business valuation?

EBITDA strips out financing, tax, and non-cash charges, making it easier to compare companies with different capital structures. Many business valuations use an EBITDA multiple (e.g., 4×–10× depending on industry) applied to normalized EBITDA.

What are the limitations of EBITDA?

EBITDA ignores capital expenditures, working capital changes, interest, taxes, and the cost of replacing assets. It should be used with net income, free cash flow, and industry context, not on its own.

Is this EBITDA calculator free?

Yes. MoneyTool provides this EBITDA calculator free for educational and planning use.

LEGAL

EBITDA Calculator Disclaimer

This EBITDA calculator provides estimates for informational and educational purposes. It does not constitute financial, legal, tax, accounting, or investment advice. EBITDA and Adjusted EBITDA are non-GAAP measures; definitions and permitted uses vary by company, industry, and jurisdiction.

Estimates only: Results depend on the inputs and assumptions described in the methodology.
Not a GAAP statement: This calculator does not produce a GAAP-compliant income statement.
Add-backs vary: Different lenders, buyers, and industries allow different EBITDA adjustments.
Verify with a professional: For reporting, valuation, or tax purposes, engage a licensed CPA or financial advisor.

Last methodology review: September 2026. Calculator logic and educational content should be reviewed again whenever the methodology, supported inputs, or relevant external guidance changes.