Accounting EBITDA Calculator Examples
Worked examples show how net income and standard add-backs produce estimated EBITDA in different business situations.
These examples use the standard net-income approach: add interest expense, income tax expense, depreciation expense, and amortization expense to net income. Each scenario uses figures from one reporting period.
Profitable service business
Annual results for a consulting business.
Input Summary
Net income
$120,000
Interest expense
$10,000
Income tax expense
$30,000
Depreciation expense
$5,000
Amortization expense
$0
Calculation Breakdown
- 1Total add-backs$10,000 + $30,000 + $5,000 + $0$45,000
- 2Estimated EBITDA$120,000 + $45,000$165,000
Result Summary
Estimated EBITDA
$165,000
Accounting EBITDA Calculator
Estimated EBITDA is $165,000.
Asset-intensive manufacturer
Annual results for a manufacturer with financed machinery.
Input Summary
Net income
$400,000
Interest expense
$90,000
Income tax expense
$130,000
Depreciation expense
$220,000
Amortization expense
$10,000
Calculation Breakdown
- 1Total add-backs$90,000 + $130,000 + $220,000 + $10,000$450,000
- 2Estimated EBITDA$400,000 + $450,000$850,000
Result Summary
Estimated EBITDA
$850,000
Accounting EBITDA Calculator
Estimated EBITDA is $850,000.
Business with a net loss
Annual results for a growing software company.
Input Summary
Net income
-$80,000
Interest expense
$15,000
Income tax expense
$0
Depreciation expense
$25,000
Amortization expense
$90,000
Calculation Breakdown
- 1Total add-backs$15,000 + $0 + $25,000 + $90,000$130,000
- 2Estimated EBITDA-$80,000 + $130,000$50,000
Result Summary
Estimated EBITDA
$50,000
Accounting EBITDA Calculator
Estimated EBITDA is $50,000.
How to Read Your Results
The EBITDA result is an earnings measure for the period selected; compare like-for-like periods.
Review the size of each add-back, especially depreciation and amortization, before interpreting the result.
Use the same currency and accounting basis for every input.
Consider EBITDA alongside net income, operating cash flow, capital expenditure, and balance-sheet information.
Assumptions & Important Notes
- All inputs in each example are from one annual reporting period.
- Amounts are shown in US dollars solely for illustration.
- The examples use standard EBITDA without one-time or management adjustments.
Related Examples
Frequently Asked Questions
What figures do I need for an EBITDA example?
You need net income, interest expense, income tax expense, depreciation expense, and amortization expense for the same period.
Can I calculate EBITDA when tax expense is zero?
Yes. Enter zero if no income tax expense was recorded for the period.
Why can a loss-making company have positive EBITDA?
Depreciation, amortization, interest, and taxes may be large enough that adding them back turns a net loss into a positive EBITDA amount.
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