EBITDA Formula

Fx Copy
LaTeX Copy
EBITDA provides a clearer picture of a company's operational profitability by excluding the effects of financing decisions, taxes, and non-cash expenses. Check FAQs
EBITDA=EBIT+D+Am
EBITDA - EBITDA?EBIT - Earnings Before Interest and Taxes?D - Depreciation?Am - Amortization?

EBITDA Example

With values
With units
Only example

Here is how the EBITDA equation looks like with Values.

Here is how the EBITDA equation looks like with Units.

Here is how the EBITDA equation looks like.

420626Edit=8746Edit+11880Edit+400000Edit
You are here -
HomeIcon Home » Category Financial » Category Financial Accounting » Category Financial Accounting » fx EBITDA

EBITDA Solution

Follow our step by step solution on how to calculate EBITDA?

FIRST Step Consider the formula
EBITDA=EBIT+D+Am
Next Step Substitute values of Variables
EBITDA=8746+11880+400000
Next Step Prepare to Evaluate
EBITDA=8746+11880+400000
LAST Step Evaluate
EBITDA=420626

EBITDA Formula Elements

Variables
EBITDA
EBITDA provides a clearer picture of a company's operational profitability by excluding the effects of financing decisions, taxes, and non-cash expenses.
Symbol: EBITDA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Earnings Before Interest and Taxes
Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.
Symbol: EBIT
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Depreciation
Depreciation is an accounting method of allocating cost of tangible asset over useful life. Monetary value of asset decreases over time due to obsolescence. This decrease is measured as depreciation.
Symbol: D
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Amortization
Amortization refers to the process of spreading out the cost of an intangible asset or capital expenditure over a specific period.
Symbol: Am
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Basics of Financial Accounting category

​Go Discount Percentage
D%=(LP-SPSP)100
​Go Depletion Charge per Unit
DC=OC-RVnDepletion
​Go Shareholders' Equity given Total Assets and Liabilities
TSE=TA-TL
​Go Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares
TSE=SC+RE-TS

How to Evaluate EBITDA?

EBITDA evaluator uses EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization to evaluate the EBITDA, The EBITDA formula is is a metric used to evaluate a company’s operating performance before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base. EBITDA is denoted by EBITDA symbol.

How to evaluate EBITDA using this online evaluator? To use this online evaluator for EBITDA, enter Earnings Before Interest and Taxes (EBIT), Depreciation (D) & Amortization (Am) and hit the calculate button.

FAQs on EBITDA

What is the formula to find EBITDA?
The formula of EBITDA is expressed as EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization. Here is an example- 420626 = 8746+11880+400000.
How to calculate EBITDA?
With Earnings Before Interest and Taxes (EBIT), Depreciation (D) & Amortization (Am) we can find EBITDA using the formula - EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization.
Copied!