Accounting EBITDA (Annual) Calculator Examples
See worked annual EBITDA examples for businesses with different revenue, cost, and operating-income profiles.
These examples show how annual revenue, direct costs, operating expenses, other operating income, and depreciation and amortization affect EBITDA, EBITDA margin, and EBIT.
Example 1: Service business with no cost of goods sold
Professional services business
Input Summary
Annual revenue
$500,000
Cost of goods sold
$50,000
Operating expenses
$300,000
Other operating income
$0
Depreciation and amortization
$15,000
Calculation Breakdown
- 1Gross profit$500,000 - $50,000$450,000
- 2EBITDA$450,000 - $300,000 + $0$150,000
- 3EBITDA margin$150,000 / $500,000 * 10030.0%
- 4EBIT$150,000 - $15,000$135,000
Result Summary
EBIT
$135,000
Accounting EBITDA (Annual) Calculator
The estimated annual EBITDA is $150,000, with a 30.0% EBITDA margin and EBIT of $135,000.
Example 2: Retail business with recurring rental income
Retail store with sublet space
Input Summary
Annual revenue
$2,000,000
Cost of goods sold
$1,200,000
Operating expenses
$500,000
Other operating income
$40,000
Depreciation and amortization
$80,000
Calculation Breakdown
- 1Gross profit$2,000,000 - $1,200,000$800,000
- 2EBITDA$800,000 - $500,000 + $40,000$340,000
- 3EBITDA margin$340,000 / $2,000,000 * 10017.0%
- 4EBIT$340,000 - $80,000$260,000
Result Summary
EBIT
$260,000
Accounting EBITDA (Annual) Calculator
The estimated annual EBITDA is $340,000, with a 17.0% EBITDA margin and EBIT of $260,000.
Example 3: Growing manufacturer with heavy depreciation
Capital-intensive manufacturing business
Input Summary
Annual revenue
$5,000,000
Cost of goods sold
$2,900,000
Operating expenses
$1,300,000
Other operating income
$0
Depreciation and amortization
$450,000
Calculation Breakdown
- 1Gross profit$5,000,000 - $2,900,000$2,100,000
- 2EBITDA$2,100,000 - $1,300,000 + $0$800,000
- 3EBITDA margin$800,000 / $5,000,000 * 10016.0%
- 4EBIT$800,000 - $450,000$350,000
Result Summary
EBIT
$350,000
Accounting EBITDA (Annual) Calculator
The estimated annual EBITDA is $800,000, with a 16.0% EBITDA margin and EBIT of $350,000.
How to Read Your Results
Gross profit shows what remains after the direct costs entered.
EBITDA measures operating earnings before interest, taxes, depreciation, and amortization.
EBITDA margin puts EBITDA in context by showing it as a percentage of revenue.
EBIT is lower than EBITDA when depreciation and amortization are positive.
Compare results across periods only when revenue and costs are classified consistently.
Assumptions & Important Notes
- Each example uses annual figures in US dollars.
- Depreciation and amortization are excluded from cost of goods sold and operating expenses.
- Other operating income is recurring and operational in nature.
- Interest and taxes are outside the calculation.
Related Examples
Frequently Asked Questions
Can I use the calculator for a small business?
Yes. Enter annual figures from the business records using consistent classifications and the same reporting period.
What if my business has no other operating income?
Enter zero. EBITDA will then be based on revenue less direct costs and operating expenses.
Why can EBIT be much lower than EBITDA?
The difference is depreciation and amortization. Asset-heavy businesses may report larger D&A expenses.
Can I use monthly figures instead?
The calculator is designed for annual figures. Monthly figures should be annualized consistently before use.
Ready to calculate your own result?
Use the live calculator with your own inputs, timing, and preferences.