Accounting EBITDA (Monthly) Calculator
Calculate estimated monthly EBITDA, EBITDA margin, gross profit and EBIT from revenue, operating costs and non-cash expenses.
Overview
This monthly EBITDA calculator estimates operating earnings before interest, taxes, depreciation and amortization. Enter monthly revenue, direct costs, operating expenses, other operating income, and depreciation and amortization to review EBITDA, margin, gross profit, and EBIT.
How it works
The calculator first subtracts cost of goods sold from revenue to calculate gross profit. It then subtracts operating expenses that exclude depreciation and amortization and adds other operating income. The result is EBITDA. EBITDA margin is EBITDA divided by revenue. Depreciation and amortization are then deducted from EBITDA to show EBIT. Interest and tax items are not included.
How to use this calculator
- 1Enter total revenue for the month.
- 2Add the direct costs associated with goods or services sold.
- 3Enter operating expenses excluding depreciation and amortization.
- 4Include recurring other operating income, if any.
- 5Add depreciation and amortization to see the EBIT reconciliation.
- 6Review monthly EBITDA and the EBITDA margin.
Example Calculation
Monthly revenue
$100,000
Cost of goods sold
$40,000
Operating expenses excluding D&A
$35,000
Other operating income
$2,000
Depreciation
$3,000
Amortization
$2,000
Monthly EBITDA
$27,000
With $100,000 in revenue, $40,000 in direct costs, $35,000 in operating expenses, and $2,000 in other operating income, estimated monthly EBITDA is $27,000. This is an EBITDA margin of 27.0%, and EBIT after $5,000 of depreciation and amortization is $22,000.
Frequently asked questions
What is monthly EBITDA?
Monthly EBITDA is earnings for one month before interest, taxes, depreciation and amortization. It is commonly used to assess operating performance before financing, tax, and certain non-cash expenses.
What expenses should be included in operating expenses?
Include recurring operating costs such as wages, rent, software, marketing, insurance, and utilities. Do not include depreciation or amortization in this field because they are handled separately.
Are interest and taxes included in EBITDA?
No. EBITDA excludes interest expense, interest income, income taxes, depreciation, and amortization.
What is a good EBITDA margin?
A suitable EBITDA margin varies widely by industry, business model, growth stage, and accounting policies. Comparing periods within the same business or comparable businesses can be more useful than using one benchmark.
What is the difference between EBITDA and EBIT?
EBITDA excludes depreciation and amortization, while EBIT includes them. This calculator shows EBIT by subtracting depreciation and amortization from EBITDA.
Why might reported EBITDA differ from this result?
Reported figures can differ because of revenue recognition, accruals, non-recurring items, adjustments, accounting policies, and whether certain income or expenses are treated as operating items.
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Assumptions and warnings
Assumptions
- All figures relate to the same monthly accounting period and use the same accounting basis.
- Operating expenses entered exclude depreciation and amortization to prevent double counting.
- Interest expense, income taxes, and non-operating gains or losses are excluded from EBITDA.
- Results are accounting estimates and should be reconciled to the business's financial statements.
Warnings
- This calculator provides an estimate only and is not accounting, tax, or financial advice.
- EBITDA is not a standardized measure under all accounting frameworks, so definitions and adjustments may differ between businesses.