This free EBITDA calculator determines an organization's earnings before interest, taxes, depreciation and amortization. You can also use it to estimate an organization's EBITDA margin.
What is EBITDA, EBIT, and EBITDA Margin?
Earnings before interest, tax, depreciation, and amortization (EBITDA) is a measurement that financial analysts use to determine the strength of an organization's operating performance. Essentially, it gives an indication of a company's earnings before it paid any interest and taxes, as determined by adding back amortization and depreciation.
The formula for EBITDA is:
EBITDA = EBIT + Depreciation + Amortization
Earnings before interest and taxes (EBIT) is a measurement that is commonly employed in accounting and finance as an indicator of a company's profit. It includes all expenses except interest and any income tax expenses. As such, it is the difference between operating revenues and operating expenses.
The formula for EBIT is:
EBITDA = Revenue − Expenses
EBITDA margin is a measurement of an organization's earnings before interest, taxes, depreciation, and amortization as a proportion of the total revenue that it earned.
EBITDA provides an indication of how much cash a company earned, while EBITDA margin indicates how much cash an organization generated in a year in relation to its total sales income.
The formula for EBITDA margin is:
EBITDA Margin = EBITDA / Total Revenue
EBITDA Calculator Example
Certainly! Here's an example of an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) calculator that utilizes a table to calculate the EBITDA for different companies:
|Company||Revenue||Cost of Goods Sold||Operating Expenses||Depreciation||Amortization||EBITDA|
In this example, we have three different companies with their respective revenue, cost of goods sold, operating expenses, depreciation, amortization, and EBITDA.
To calculate EBITDA, you can use the formula: EBITDA = Revenue - Cost of Goods Sold - Operating Expenses + Depreciation + Amortization
For instance, for Company A with a revenue of $1,000,000, cost of goods sold of $400,000, operating expenses of $200,000, depreciation of $50,000, and amortization of $20,000, the EBITDA would be $330,000.
Similarly, using the same formula, you can calculate the EBITDA for Companies B and C based on their respective financial figures mentioned in the table.
EBITDA is a financial metric used to measure a company's operating performance by excluding interest, taxes, depreciation, and amortization. It provides insights into a company's profitability before accounting for non-operational expenses. EBITDA is often used in financial analysis to evaluate and compare the operating performance of companies across different industries. However, it is important to note that EBITDA does not consider capital expenditures or other cash flow-related factors, and it should be used in conjunction with other financial metrics for a comprehensive assessment of a company's financial health.