Starlight Tools

EBITDA Calculator

Calculate EBITDA, EBIT, EBIT margin, and EBITDA margin from revenue, expenses, net income, interest, taxes, depreciation, and amortization. Fully client-side.

Inputs & Options

Current result
EBITDA $0.00 | EBIT $0.00
Method: EBITDA from EBIT Period: Annual
Input rules
  • Enter expenses as positive amounts. Use negative numbers for benefits, credits, or reversals.
  • Use the same period for every input: monthly, quarterly, annual, or TTM.
  • Margins are left blank when revenue is zero or not supplied.

Use this when you already know EBIT or operating income and need EBITDA.

Formula: EBITDA = EBIT + Depreciation + Amortization.

Optional for valuation, lending, and buyer analysis. Enter normal add-backs as positive amounts and credits as negative amounts.

Results

EBITDA
$0.00
EBIT
$0.00
D&A total
$0.00
Adjusted EBITDA
$0.00
EBITDA vs EBIT
EBITDA EBIT Adjusted EBITDA
EBITDA margin
-
EBIT margin
-
Adjusted EBITDA margin
-
Revenue used for margin
$0.00

Calculation steps

    Calculate EBITDA, EBIT, and Margins

    This calculator turns income statement figures into EBITDA, EBIT, EBIT margin, and EBITDA margin. You can start from operating income, net income, or revenue and costs, then add depreciation expense and amortization expense separately to see the full EBITDA formula.

    EBIT, or earnings before interest and taxes, is commonly treated as operating income when non-operating gains and losses are excluded. EBITDA, or earnings before interest, taxes, depreciation, and amortization, adds back non-cash D&A charges. EBITDA is useful for comparing operating performance, but it is not the same as cash flow because it excludes working capital, capital expenditures, tax cash payments, and debt principal.

    Core formulas

    • EBITDA from EBIT = EBIT + Depreciation + Amortization
    • EBITDA from net income = Net income + Interest + Taxes + Depreciation + Amortization
    • EBIT from net income = Net income + Interest + Taxes
    • EBITDA margin = EBITDA / Revenue
    • EBIT margin = EBIT / Revenue

    Informational only - not accounting advice. Use the same reporting period for every input and review company-specific adjustments carefully.

    EBIT vs EBITDA

    Metric Includes Excludes When to use Key limitation
    EBIT Operating profit after depreciation and amortization Interest and income taxes Capital-intensive companies, operating profit analysis, depreciation-heavy industries Can be affected by accounting estimates for asset lives and amortization schedules
    EBITDA Operating profit before depreciation and amortization Interest, taxes, depreciation, amortization, capital expenditure needs, and working capital Valuation multiples, lender screens, comparisons across tax and financing structures Can overstate performance when a business needs heavy reinvestment in assets

    Worked Examples

    Scenario Inputs Calculation Result
    Operating income example EBIT 2,500; depreciation 300; amortization 200 EBITDA = 2,500 + 300 + 200 EBITDA = 3,000
    Net income example Net income 1,450; interest 350; taxes 700; depreciation 300; amortization 200 EBITDA = 1,450 + 350 + 700 + 300 + 200 EBITDA = 3,000; EBIT = 2,500
    Revenue and expenses example Revenue 10,000; COGS 4,000; cash OPEX 3,500; D&A 500 EBITDA = 10,000 - 4,000 - 3,500; EBIT = 2,500 - 500 EBITDA = 2,500; EBIT = 2,000
    Adjusted EBITDA example EBITDA 3,000; one-time expenses 400; owner compensation adjustment 150 Adjusted EBITDA = 3,000 + 400 + 150 Adjusted EBITDA = 3,550

    Use positive numbers for expenses and add-backs. Use negative numbers only when an item is a benefit, credit, or downward adjustment.

    FAQ

    How do you calculate EBITDA from net income?

    EBITDA = net income + interest expense + income taxes + depreciation + amortization. Enter tax benefits or credits as negative numbers.

    How do you calculate EBITDA from EBIT?

    EBITDA = EBIT + depreciation + amortization. EBIT is often called operating income when the statement excludes non-operating items.

    How do you convert EBITDA to EBIT?

    Subtract depreciation and amortization from EBITDA: EBIT = EBITDA - depreciation - amortization.

    What is EBITDA margin?

    EBITDA margin is EBITDA divided by revenue. The calculator leaves the margin blank when revenue is zero or not supplied.

    What is a good EBITDA margin?

    It depends on the industry and business model. Compare against similar companies, the same company over time, and the capital needed to sustain revenue.

    Is EBITDA the same as cash flow?

    No. EBITDA ignores working capital, capital expenditures, taxes paid, debt principal, and other cash timing differences.

    Why is EBITDA non-GAAP?

    EBITDA is non-GAAP because it is not a standardized accounting profit measure. Adjusted EBITDA is even less standardized because add-backs vary by company.

    Is operating income the same as EBIT?

    Often, but not always. Operating income can be used as EBIT when it excludes interest, taxes, non-operating gains, and non-operating losses.

    When is EBIT better than EBITDA?

    EBIT is often better for capital-intensive businesses because depreciation and amortization represent real asset costs that EBITDA adds back.

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