Two figures in, a clear answer out. The ebitda calculator uses amortization expense, depreciation expense and operating profit to produce ebitda, applying the standard relationship for this problem in the order the calculation actually needs it.
What Is the EBITDA Calculator?
The ebitda calculator takes amortization expense, depreciation expense and operating profit and turns them into ebitda.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the EBITDA Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with amortization expense set to 10, depreciation expense set to 5, operating profit set to 2, the calculator returns ebitda of 17. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out ebitda?
Enter amortization expense, depreciation expense and operating profit. The calculator then works through the relationship and reports ebitda.
What does the ebitda actually calculate?
It takes amortization expense, depreciation expense and operating profit and converts them into ebitda using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter amortization expense?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.
Do I have to fill in every field?
Only the fields a particular result depends on. If you leave one blank, the results that need it simply show a note instead of a number, and everything else still works.