Accounting EBITDA (Per-Unit) Calculator
Estimate EBITDA per unit, total EBITDA, and EBITDA margin from per-unit revenue and operating costs.
Overview
This Accounting EBITDA (Per-Unit) Calculator estimates the operating earnings contributed by each unit sold. Enter net revenue, direct costs, operating expenses, and any recurring other operating income on a per-unit basis, along with the number of units sold.
How it works
The calculator starts with revenue per unit and adds any recurring other operating income per unit. It then subtracts cost of goods sold and operating expenses per unit, provided those costs exclude depreciation and amortization. This produces EBITDA per unit. Multiplying the per-unit amounts by units sold produces total EBITDA, while EBITDA margin compares EBITDA per unit with revenue per unit.
How to use this calculator
- 1Enter the number of units sold in the period.
- 2Add the average net revenue earned per unit.
- 3Enter direct cost of goods sold per unit, excluding depreciation and amortization.
- 4Add operating expenses allocated to each unit, also excluding depreciation and amortization.
- 5Include recurring other operating income per unit if applicable.
- 6Review EBITDA per unit, total EBITDA, and EBITDA margin.
Example Calculation
Units Sold
10000
Revenue per Unit
$50
Cost of Goods Sold per Unit
$22
Operating Expenses per Unit
$15
Other Operating Income per Unit
$1
EBITDA per Unit
$14.00
With 10,000 units sold, revenue of 50 per unit, direct costs of 22 per unit, operating expenses of 15 per unit, and other operating income of 1 per unit, estimated EBITDA is 14 per unit, or 140,000 total. The EBITDA margin is 28.0%.
Frequently asked questions
What is EBITDA per unit?
EBITDA per unit is the operating earnings generated by one unit sold before interest, taxes, depreciation, and amortization. It can help compare profitability across products, services, or periods.
How is EBITDA per unit calculated?
It is calculated as revenue per unit plus recurring other operating income per unit, minus cost of goods sold per unit and operating expenses per unit. Depreciation and amortization should be excluded from the entered costs.
Should depreciation be included in operating expenses?
No. EBITDA is measured before depreciation and amortization, so those expenses should be excluded from the cost inputs used in this calculator.
What is a good EBITDA margin per unit?
A suitable EBITDA margin varies substantially by industry, business model, scale, and accounting practices. Comparing results with similar products or businesses is usually more useful than using one general benchmark.
Why can total EBITDA differ from reported EBITDA?
Reported EBITDA may use different revenue recognition, cost allocations, non-recurring adjustments, lease treatment, or accounting policies. This calculator uses the recurring per-unit figures you enter.
Can I use this calculator for services instead of physical products?
Yes. Treat each completed service, customer account, subscription period, or project as a unit, provided your revenue and costs are consistently measured on the same basis.
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Assumptions and warnings
Assumptions
- Revenue per unit represents net revenue after applicable discounts, returns, and allowances.
- Cost of goods sold and operating expenses are entered excluding depreciation and amortization.
- Other operating income is recurring and relates to normal operations.
- Per-unit figures and sales volume relate to the same accounting period.
- Results are estimates based on the figures entered and do not apply a specific accounting standard or reporting policy.
Warnings
- This calculator provides an estimate only and is not accounting, financial, or tax advice.
- EBITDA definitions and expense classifications can differ between businesses, reporting frameworks, and lenders.