About the EBITDA Calculator
What is the EBITDA Calculator?
EBITDA – earnings before interest, taxes, depreciation and amortisation – measures operating cash profit before financing and accounting choices. Lenders and investors use it to compare businesses and to value them.
This EBITDA calculator starts from net profit and adds back interest, tax, depreciation and amortisation. Add revenue to see the EBITDA margin.
How to use the EBITDA Calculator
- Net Profit (₹) (sample: 18,00,000)
- Interest Expense (₹) (sample: 3,00,000)
- Income Tax Expense (₹) (sample: 6,00,000)
- Depreciation (₹) (sample: 5,00,000)
- Amortisation (₹) (sample: 1,00,000)
- Revenue (₹, for the margin) (sample: 1,50,00,000)
- Press Calculate EBITDA (results also refresh as you type). The result card shows the EBITDA, along with EBIT (operating profit), D&A added back, EBITDA margin and Net profit margin.
Formula used
EBITDA = Net profit + Interest + Taxes + Depreciation + Amortisation
- EBIT = net profit + interest + taxes
- EBITDA margin = EBITDA ÷ revenue × 100
EBITDA ignores capital spending and working capital, so it is not the same as cash flow.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Net Profit (₹) | 18,00,000 |
| Interest Expense (₹) | 3,00,000 |
| Income Tax Expense (₹) | 6,00,000 |
| Depreciation (₹) | 5,00,000 |
| Amortisation (₹) | 1,00,000 |
| Revenue (₹, for the margin) | 1,50,00,000 |
| Result | Value |
|---|---|
| EBITDA | ₹33,00,000 |
| EBIT (operating profit) | ₹27,00,000 |
| D&A added back | ₹6,00,000 |
| EBITDA margin | 22% |
| Net profit margin | 12% |
Tips for using the EBITDA Calculator
- Capital-heavy businesses can show strong EBITDA but weak cash flow; also check free cash flow.
- Banks often cap total debt at 3–4 times EBITDA.