Accounting EBITDA (Monthly) Calculator Examples
Explore worked monthly EBITDA examples for a service business, product business, and low-margin business.
These examples show how different cost structures affect gross profit, monthly EBITDA, EBITDA margin, and EBIT. They are simplified estimates using consistent monthly figures.
Service business with low direct costs
Monthly service-business profitability example
Input Summary
Revenue
$80,000
Cost of goods sold
$12,000
Operating expenses excluding D&A
$42,000
Other operating income
$0
Depreciation and amortization
$2,000
Calculation Breakdown
- 1Gross profit$80,000 - $12,000$68,000
- 2EBITDA$68,000 - $42,000 + $0$26,000
- 3EBITDA margin$26,000 / $80,000 * 10032.5%
- 4EBIT$26,000 - $2,000$24,000
Result Summary
EBIT
$24,000
Accounting EBITDA (Monthly) Calculator
The business produces $26,000 of monthly EBITDA and a 32.5% EBITDA margin.
Product business with inventory costs
Monthly product-business EBITDA example
Input Summary
Revenue
$150,000
Cost of goods sold
$90,000
Operating expenses excluding D&A
$38,000
Other operating income
$1,500
Depreciation and amortization
$4,500
Calculation Breakdown
- 1Gross profit$150,000 - $90,000$60,000
- 2EBITDA$60,000 - $38,000 + $1,500$23,500
- 3EBITDA margin$23,500 / $150,000 * 10015.7%
- 4EBIT$23,500 - $4,500$19,000
Result Summary
EBIT
$19,000
Accounting EBITDA (Monthly) Calculator
The retailer has $23,500 of monthly EBITDA, a 15.7% EBITDA margin, and $19,000 of EBIT.
Growth month with negative EBITDA
Monthly negative EBITDA example
Input Summary
Revenue
$50,000
Cost of goods sold
$20,000
Operating expenses excluding D&A
$35,000
Other operating income
$0
Depreciation and amortization
$1,000
Calculation Breakdown
- 1Gross profit$50,000 - $20,000$30,000
- 2EBITDA$30,000 - $35,000 + $0-$5,000
- 3EBITDA margin-$5,000 / $50,000 * 100-10.0%
- 4EBIT-$5,000 - $1,000-$6,000
Result Summary
EBIT
-$6,000
Accounting EBITDA (Monthly) Calculator
The business reports negative monthly EBITDA of $5,000 and a -10.0% EBITDA margin.
How to Read Your Results
Gross profit shows the amount remaining after direct costs, before overhead and other operating income.
EBITDA shows operating earnings before interest, taxes, depreciation, and amortization.
EBITDA margin allows comparisons of EBITDA relative to revenue across months with different sales levels.
EBIT shows the result after depreciation and amortization, but still before interest and taxes.
Assumptions & Important Notes
- Every example uses one monthly accounting period.
- Operating expenses do not include depreciation or amortization.
- Other operating income is assumed to be recurring and operational.
- Examples are educational estimates, not accounting or financial advice.
Related Examples
Frequently Asked Questions
Can monthly EBITDA be negative?
Yes. EBITDA is negative when gross profit plus other operating income is less than operating expenses excluding depreciation and amortization.
Why can a business have positive gross profit but negative EBITDA?
Gross profit does not include overhead such as payroll, rent, marketing, and software. These operating expenses can exceed gross profit.
Should depreciation be deducted from EBITDA?
No, not when reporting EBITDA. Deduct depreciation and amortization only when calculating EBIT.
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