Free Financial Tools

EBITDA Calculator

Analyze operational cash flow. Calculate EBITDA, EBIT, and EBITDA margin percentages online to evaluate core profit ratios.

This EBITDA calculator shows earnings before interest, tax, depreciation and amortisation — a view of operating profitability that strips out financing and accounting effects.

Formula
EBITDA = Revenue − Operating expenses (excl. D&A)

Parameters

Results

EBITDA Value92,000
Operating Profit (EBIT)75,000
EBITDA Margin36.8%
Financial Metrics Breakdown
EBIT (Earnings Before Interest & Taxes)75,000
EBITDA (Earnings Before D&A)92,000
Sales Revenue Comparison250,000

How EBITDA is built up

Each line adds back a cost that is not part of day-to-day operations, so what remains reflects the trading performance of the business itself.

StepAmountRunning total
Net income₹50,000₹50,000
+ Interest₹10,000₹60,000
+ Taxes₹15,000₹75,000
= EBIT₹75,000
+ Depreciation₹12,000₹87,000
+ Amortisation₹5,000₹92,000
= EBITDA₹92,000
Margin on sales36.8%₹2,50,000 revenue

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Understanding the Calculations & Formulas

EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is an alternate measure of operational profitability. It helps assess the performance of a business without having to factor in financing decisions, tax laws, or write-off non-cash entries.

EBITDA Formula:

EBIT = Net Income + Interest Expense + Taxes
EBITDA = EBIT + Depreciation + Amortization
EBITDA Margin (%) = (EBITDA ÷ Total Sales Revenue) × 100

Depreciation applies to tangible fixed assets (like machinery and furniture) over their life cycle, while Amortization applies to intangible assets (such as patents, licenses, and software development logs). Writing these back helps evaluate operational cash margins.

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Frequently Asked Questions

Why is EBITDA useful?

It shows how the core operation performs before financing and accounting decisions, which makes it easier to compare two businesses or two periods.

Where do I get my revenue and expense figures?

From your sales and expense reports. Easy Khata tracks both, so the inputs come from real transactions rather than estimates.