EBITDA Calculator

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EBITDA Calculator is used to calculate the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of a company

EBITDA:
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What does EBITDA mean?
Earnings before interest, tax, depreciation, and amortization (EBITDA) gives an indication of a company's earnings before it paid any interest and taxes, as determined by adding back amortization and depreciation.
Formula
EBITDA = Net Profit + Interest +Taxes + Depreciation + Amortization
Example
A firms annual income statementA firms annual income statement
Revenue$2,000,000
Operating Expense
Salaries(1,000,000)
Rent(500,000)
Amortization(25,000)
Depreciation(75,000)
Earnings Before Interest and Taxes (EBIT)$400,000
Interest Expense(50,000)
Operating Income (Earnings Before Taxes, or EBT)$350,000
Taxes(100,000)
Net Income$250,000

According to the above formula:-

  • EBITDA = $250,000 + $50,000 + $100,000 + $75,000 + $25,000
  • EBITDA = $500,000