EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance that shows earnings before the impact of financing decisions, accounting decisions, and tax environments.

What is the EBITDA formula?

The EBITDA formula is: Net Income + Interest + Taxes + Depreciation + Amortization. Alternatively, it can be calculated as: Operating Income + Depreciation + Amortization.

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EBITDA Formula

The standard EBITDA formula is:

EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

Alternative calculation:

EBITDA = Operating Income + Depreciation + Amortization

Net Income ($)

Interest Expenses ($)

Taxes ($)

Depreciation ($)

Amortization ($)

Understanding EBITDA

What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes , Depreciation, and Amortization. It's a measure of a company's financial performance that provides insight into operational profitability by excluding non-operating expenses.

Why is EBITDA Important?

EBITDA is widely used to compare companies within the same industry, as it eliminates the effects of financing and accounting decisions, allowing for a clearer comparison of operational performance.

EBITDA Calculator

EBITDA Formula

Calculation Results

Understanding EBITDA

What is EBITDA?

Why is EBITDA Important?