What does EBITDA stand for?
Earnings before interest, taxes, depreciation, and amortization.
EBITDA Calculator
Estimate EBITDA using operating income + D&A, or build it from revenue, cash operating expenses, and D&A.
Choose an EBITDA path
Operating-income mode is simplest. Revenue mode subtracts COGS and opex, then adds back D&A if they were included.
About this calculator
How to use EBITDA Calculator, plus the formulas and logic behind the results.
Tool description
EBITDA approximates operating cash earnings before interest, taxes, depreciation, and amortization. It is widely used in valuation multiples but is not a GAAP measure.
How to use
- Select operating-income or revenue mode.
- Enter D&A and either EBIT or revenue and cash operating expenses.
- Select Calculate to view EBITDA.
- Remember EBITDA ignores capex and working capital needs.
Formulas & reference
EBITDA = Operating income + D&AEBITDA = Revenue − Expenses(ex-D&A) + D&A(If expenses already exclude D&A, adding D&A yields a cash-ish operating figure)
EBITDA caveats
- Not the same as cash flow
- Popular for EV/EBITDA screens
- Interest and taxes excluded
- Add-backs can be aggressive—be careful
Calculation logic
Operating mode adds D&A to EBIT. Revenue mode computes revenue − expenses + D&A, treating expenses as cash operating costs excluding D&A.
EBITDA can overstate cash available if the business needs heavy capital expenditure.
EBITDA Calculator FAQ
Common questions about the calculation and how to interpret the estimate.
How is EBITDA calculated from EBIT?
Add depreciation and amortization back to operating income.
Is EBITDA cash flow?
No. It ignores capex, taxes, interest, and working capital changes.
Why use two modes?
Some statements start from EBIT; others start from revenue and expense totals.
Should D&A be in expenses?
In revenue mode, enter expenses excluding D&A, then add D&A separately.
Is EBITDA standardized?
Definitions vary; always read footnotes for add-backs.