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EBITDA Calculator
Add interest, taxes, depreciation, and amortization back to net income and compare EBITDA with revenue.
EBITDA Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
$200,000 net income plus $80,000 of interest, taxes, depreciation, and amortization produces $280,000 EBITDA.
How this calculation works
This calculation starts with net income and reverses the specified expenses. Adjusted EBITDA requires separate support for non-recurring items.
How to interpret the result
EBITDA is not cash flow because it omits capital expenditure, working capital, debt principal, and taxes paid.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Formula and example
$200,000 net income plus $80,000 of interest, taxes, depreciation, and amortization produces $280,000 EBITDA.
Common use cases
- Normalize capital-structure differences.
- Calculate an EBITDA valuation multiple.
- Compare operating profitability.
EBITDA Calculator FAQ
Why is EBITDA not cash flow?
EBITDA excludes capital expenditure, working-capital movements, debt principal, and cash taxes.
Should owner salary be added back to EBITDA?
Only when presenting an explicitly adjusted figure and replacing it with a defensible market-rate management cost.
How is EBITDA calculated?
This calculation starts with net income and reverses the specified expenses. Adjusted EBITDA requires separate support for non-recurring items.
How should I interpret the result?
EBITDA is not cash flow because it omits capital expenditure, working capital, debt principal, and taxes paid.