Accounting Share · Profit, pricing & growth

EBITDA Calculator

Reconcile net income to a basic EBITDA measure by adding back financing, income-tax, depreciation and amortisation amounts included in that income.

Free to useVisible formula & workingsNo account required

The interactive calculator requires JavaScript. The formula and worked example below remain available.

03 / Understand the method

Formula and method

Net income + Interest + Income tax + Depreciation + Amortisation

Reconcile net income to a basic EBITDA measure by adding back financing, income-tax, depreciation and amortisation amounts included in that income.

How to use this calculator

  1. Collect the figures for the same entity, currency and reporting period.
  2. Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
  3. Choose Calculate, inspect the breakdown and compare the result with your assumptions.
  4. Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.

Inputs at a glance

  • Net income: May be positive, zero or negative; the sign changes its effect in the displayed formula.
  • Net interest expense: May be positive, zero or negative; the sign changes its effect in the displayed formula.
  • Income-tax expense: May be positive, zero or negative; the sign changes its effect in the displayed formula.
  • Depreciation expense: A nonnegative numeric input in the units specified by the label.
  • Amortisation expense: A nonnegative numeric input in the units specified by the label.

Worked example

Follow one calculation.

Net income
20000
Net interest expense
3000
Income-tax expense
5000
Depreciation expense
4000
Amortisation expense
1000
Calculated result
33,000

Load this example in the interactive form to inspect the intermediate amounts.

Assumptions and interpretation

EBITDA is not operating cash flow or a standardised replacement for net income. Entity-specific adjusted EBITDA requires a separate transparent reconciliation.

The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.

Questions about this tool

What does the ebitda calculation measure?

Reconcile net income to a basic EBITDA measure by adding back financing, income-tax, depreciation and amortisation amounts included in that income.

Which assumptions can change the result?

EBITDA is not operating cash flow or a standardised replacement for net income. Entity-specific adjusted EBITDA requires a separate transparent reconciliation.

Why can displayed totals differ slightly from my spreadsheet?

Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.

Reference and further learning

Financial accounting reference. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.

Look up an accounting term · Practise with accounting questions

Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *