Calculate EBITDA and adjusted EBITDA from income statement inputs with margin analysis and industry benchmark comparison.
Starting from net income, the EBITDA Calculator adds back interest expense, income tax expense, depreciation, and amortization, then divides EBITDA by revenue to show the margin. Optional adjustment entries produce adjusted EBITDA and its margin, while an industry selection supplies benchmark context. The frequent surprise is that adjusted EBITDA is not a fixed accounting subtotal: its value changes with the add-backs entered, so two analysts can start with the same statements and report different adjusted figures.
A concrete input and expected output from the current implementation.
Input
Revenue: $1,000,000 Net income: $100,000 Interest expense: $20,000 Income tax expense: $30,000 Depreciation: $40,000 Amortization: $10,000 Adjustments: $15,000
Expected output
EBITDA: $200,000 EBITDA margin: 20.0% Adjusted EBITDA: $215,000 Adjusted EBITDA margin: 21.5%
EBITDA is $100,000 + $20,000 + $30,000 + $40,000 + $10,000 = $200,000. Adding $15,000 produces adjusted EBITDA of $215,000, and dividing those amounts by $1,000,000 gives margins of 20.0% and 21.5%.
The base calculation starts with net income and adds the period's interest expense, income tax expense, depreciation, and amortization. Revenue is not added to earnings; it is the denominator for EBITDA margin. All amounts should cover the same reporting period and use the same currency.
Adjusted EBITDA begins with calculated EBITDA and applies the separately entered adjustments. Its margin equals adjusted EBITDA divided by revenue. When an industry is selected, the calculator places the calculated margin in benchmark context. The benchmark is a comparison point and does not change the underlying EBITDA arithmetic.
No. Enter only the interest expense recognized for the same period as net income. Loan principal is a financing cash flow, not an expense added back in the EBITDA reconciliation. Using the full loan payment overstates EBITDA, and cash interest paid can also differ from the interest expense reported for the period.
Use adjustments you can identify and explain separately. A nonrecurring expense may be added back, while a nonrecurring gain may need to be deducted, depending on the comparison. There is no universal list of acceptable items. Excluding recurring operating costs can make adjusted EBITDA look stronger while reducing its comparability.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
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