Inputs
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EBITDA
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Enter values to calculate.
EBITDA margin
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Operating income
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Formulas: EBITDA = revenue - COGS - operating expenses (excluding D and A). Margin = EBITDA / revenue x 100.
Enter revenue, COGS, operating expenses and depreciation to get EBITDA and margin.
Results update live as you type.
Enter values to calculate.
EBITDA strips out interest, taxes, depreciation and amortization to show the cash earnings of the core operation. It lets you compare companies with different debt levels, tax situations and asset ages on equal footing.
It ignores real costs: interest must be paid, and assets must eventually be replaced (depreciation is a placeholder for that). Use EBITDA alongside operating income and cash flow, never alone.