JC Castle Accounting

JC Castle Accounting
TALK TO US!
EBITDA Calculator

EBITDA Calculator

Our EBITDA Calculator online helps you quickly measure your company’s earnings before interest, taxes, depreciation, and amortization. Instead of struggling with spreadsheets, you can instantly calculate EBITDA and understand your business’s financial health. Whether you are a small business owner, an investor comparing companies, or an accountant, this tool simplifies the process of EBITDA calculation.

EBITDA

$0
Earnings Before Interest, Taxes, Depreciation, and Amortization

EBITDA Margin

0%

Net Income

$0

Total Add-Backs

$0

Financial Calculators

Contents

What is EBITDA and Why is it Important?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Many users often ask, “how is EBITDA calculated?” because it’s one of the most common benchmarks for company performance.

  • It shows operating profitability by removing financing and accounting decisions.
  • It makes it easier to compare companies across industries.
  • It’s useful when analyzing mergers, acquisitions, or business valuations.

Some users search for ebtida or EBITA margin interchangeably with EBITDA. The difference is that EBITA excludes only amortization, while EBITDA excludes both depreciation and amortization.

How to Use Our Online EBITDA Calculator

Our EBITDA calculator is designed for speed and simplicity. No complicated formulas or tricky math steps are required. Just pull the key numbers from your income statement, like net income, taxes, and depreciation, and enter them into our EBITDA formula calculator. With a few clicks, you’ll have an accurate view of your earnings and be able to spot trends right away.

If you’re still unsure how to calculate EBITDA from income statement details, our step-by-step guide inside the EBITDA calc will walk you through each piece of data you need. Give it a try today and see how a better understanding of your finances can drive smarter business decisions!

How to Calculate EBITDA (Step by Step)

There are different ways to calculate EBITDA depending on what financial data you have:

  1. From Net Income:
    EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization.
  2. From Operating Profit:
    EBITDA = Operating Profit + Depreciation + Amortization.
  3. EBIT Margin Formula:
    EBIT = Revenue – Expenses (excluding interest and tax).
    Then, EBITDA Margin Formula = (EBITDA ÷ Revenue) × 100.
  4. How to Calculate EBITA:
    EBITA = EBITDA – Depreciation.
    This shows profit before amortization but after depreciation.

Many people ask, “how to calculate EBITDA from income statement?” → Simply locate operating profit and add back depreciation and amortization.

Why Use Our EBITDA Calculator Online?

  • Quickly compare results across different companies.
  • Save time vs. manual EBITDA calculation formula.
  • Works for startups, investors, accountants, and finance students.
  • Useful for calculating net profit margin and checking EBITDA margin formula side by side.
  • Answers common questions like “does EBITDA include salaries?” (yes, it does, since salaries are part of operating costs).

By using our tool, you’ll also see why some industries have higher or lower EBITDA. For example, tech companies may have a higher margin than retail.

Practical Examples of EBITDA Use

  • Investors use it to compare companies regardless of tax or debt structures.
  • Small businesses use our calculator for accounting to see how much of their revenue is converted into operating profit.
  • Analysts apply how to calculate EBITDA margin formulas to evaluate performance.
  • Lenders often check EBITDA to determine loan repayment capacity.

For example, if your company has $1M in revenue and $200K EBITDA, your EBITDA margin is 20%. Many users also search for what is a good EBITDA margin — the answer varies by industry but usually falls between 10%–20% for healthy businesses.

EBITDA Calculator

💡 Need Professional Financial Guidance?

Our EBITDA Calculator online is a powerful first step. But if you’re still asking yourself how to find EBITDA or need deeper insights into profitability, we can help. Our accounting experts assist with:

  • Financial statement analysis
  • Business valuation
  • Tax planning and deductions
  • Advanced reporting beyond EBITDA
Work With Our Accounting Experts

FAQs

1. How do you calculate EBITDA from an income statement?.

Take operating profit and add back depreciation and amortization. This is the most common method accountants use

2. What is the difference between EBITDA, EBIT, and EBITA?.

  • EBITDA excludes both depreciation and amortization.
  • EBITA excludes only amortization.
  • EBIT excludes both depreciation and amortization adjustments and is shown using the EBIT margin formula.

3. Does EBITDA include salaries and employee benefits?

Yes. Since salaries are part of operating expenses, they are included in EBITDA..

4. What is considered a good EBITDA margin?.

A “good” EBITDA margin depends on your industry. Using the EBITDA margin formula, most businesses target 10%–20%, but capital-intensive industries may have lower margins.