EBITDA Calculator

Formula

To calculate EBITDA:

\[ EBITDA = OP + DE + AE \]

Where:

\(EBITDA\) is the Earnings Before Interest, Taxes, Depreciation, and Amortization
\(OP\) is the Operating Profit
\(DE\) is the Depreciation Expense
\(AE\) is the Amortization Expense

What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to assess a company's operating performance. By excluding interest, taxes, depreciation, and amortization, EBITDA provides a clearer view of a company's operational profitability and is useful for comparing the financial performance of companies across different industries and countries.

Example Calculation

Let's assume the following values:

Operating Profit (\(OP\)) = 100,000
Depreciation Expense (\(DE\)) = 20,000
Amortization Expense (\(AE\)) = 10,000

Using the formula:

\[ EBITDA = 100,000 + 20,000 + 10,000 = 130,000 \]

The EBITDA is 130,000.