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EBITDA Calculator

EBITDA is how investors compare the real operating health of two very different businesses. Enter your revenue and costs to see your earnings before interest, taxes, depreciation and amortisation, and the margin that comes with it.

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Non-cash add-backs
EBITDA, annual
Healthy
₹1.4 Cr
That is an EBITDA margin of 28.0% on ₹5 Cr revenue
EBITDA margin
28.0%
Gross profit
₹3.2 Cr
Operating profit
₹1 Cr
Gross margin
64%
Profit waterfall
From revenue down to EBITDA
₹5 Cr
−₹1.8 Cr
−₹1.8 Cr
₹1.4 Cr
Revenue
COGS
OpEx
EBITDA
Cost breakdown
Where each rupee of revenue goes
28.0%
EBITDA
Cost of goods33%
Operating expenses33%
Depreciation & amortisation7%
EBITDA26%
Margin versus sector
Your EBITDA margin against typical bands
28%
12%
30%
40%
You
Services
~12%
SaaS
~30%
Strong
40%+
How this calculator works

Operating profit, before the non-cash charges

Take revenue, subtract the cost of goods and operating expenses to reach operating profit, then add back depreciation and amortisation. What remains is EBITDA.

The formulas
Gross profit
Revenue − Cost of goods sold
Operating profit (EBIT)
Gross profit − Operating expenses
EBITDA
EBIT + Depreciation + Amortisation
EBITDA margin
EBITDA ÷ Revenue
Every field explained

What each input actually means

Period
Whether your figures are annual, quarterly or monthly. EBITDA and margin are calculated for whatever period you choose.
Total revenue
All income from your core business over the period, before any costs are taken out.
Cost of goods sold
The direct cost of delivering your product or service, such as materials, hosting or fulfilment. Subtracted to get gross profit.
Operating expenses
The cost of running the business, including salaries, marketing, rent and software. Subtracted to get operating profit.
Depreciation
The non-cash expense that spreads the cost of physical assets over their life. Added back into EBITDA.
Amortisation
The same idea as depreciation, but for intangible assets like software or patents. Also added back.
Benchmarks

What EBITDA margin is healthy?

Margins vary widely by business model, so read yours against the right peer set.

Software and SaaS: 30%+
At scale, software businesses run very high EBITDA margins because the cost of serving another customer is low.
Healthy general business: 15 to 25%
A solid margin for most product and service companies, showing the operations comfortably cover their costs.
Services and agencies: 10 to 20%
People-heavy models carry higher operating costs, so margins are typically lower but still sustainable.
Retail and low-margin: 5 to 10%
Thin by nature, these businesses rely on volume. A single-digit EBITDA margin can be perfectly healthy here.
Questions, answered

EBITDA FAQ

EBITDA stands for earnings before interest, taxes, depreciation and amortisation. It measures a company’s core operating profit, stripped of financing and accounting decisions, so businesses can be compared on operations alone.
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