EBITDA Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Your EBITDA is $250,000, a 25% margin.
After depreciation, interest and tax, net profit is $142,200.
EBITDA
$250,000
EBITDA leaves out interest, tax and the cost of wearing out equipment, so it flatters businesses with heavy assets or debt. Look at net profit too.
Show the working
EBITDA = 1,000,000 − 450,000 − 300,000 = 250,000
EBIT = EBITDA − 50,000 = 200,000
Net = (EBIT − 20,000) × (1 − 21%) = 142,200
Profit and loss
| Line | Amount | Margin |
|---|---|---|
| Revenue | 1,000,000 | 100% |
| Gross profit | 550,000 | 55% |
| EBITDA | 250,000 | 25% |
| EBIT | 200,000 | 20% |
| Profit before tax | 180,000 | 18% |
| Net profit | 142,200 | 14.2% |
Questions people ask
What is EBITDA?
Earnings before interest, tax, depreciation and amortisation: revenue minus the cost of goods and operating costs. It shows how much cash the operations make.
Why do buyers use EBITDA?
Small businesses are often valued at a multiple of EBITDA, because it compares businesses with different debts and tax.
What does EBITDA leave out?
Equipment wearing out, interest on loans and tax are all real costs. Net profit includes them.
Updated 22 Oct 2026Source: Standard business accounting formulasChecked by AotobSimplified profit and loss. Not accounting or tax advice.Report an issue