Use this calculation when every balance, flow, and elapsed period follows the same accounting basis, currency, entity boundary, and reporting period. It is useful for a reproducible schedule or analytical cross-check, but the result should still reconcile to the ledger.

Net income

Net income for the period.

Interest expense

Interest expense for the period.

Income tax expense

Income tax expense for the period.

Depreciation

Depreciation expense for the period.

Amortization

Amortization expense for the period.

The implemented rule is: Calculate EBITDA as net income plus interest, taxes, depreciation, and amortization addbacks, all from the same period and currency.^[1]

EBITDA

Earnings before interest, taxes, depreciation, and amortization.

The calculator applies the stated arithmetic and does not decide whether a recognition method or classification is permitted under a particular accounting framework. Estimates, cutoff errors, seasonality, acquisition effects, inconsistent averages, and differing policies can make a mathematically correct result misleading. EBITDA is not a substitute for cash flow and can differ between issuers because adjusted presentations may exclude different items.

Reconcile the inputs to the general ledger and supporting schedules. For reporting decisions, compare the result with the entity's accounting policy, applicable GAAP or IFRS guidance, prior-period disclosures, and an accountant's review.

• Times Interest Earned Calculator

  Calculate times interest earned as operating income (EBIT) divided by interest expense, measuring how many times current earnings cover interest obligations.

• Free Cash Flow Calculator

  Calculate free cash flow as net cash provided by operating activities minus capital expenditures for the same period and currency.