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Your inputs
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₹
₹
₹
Non-cash add-backs
₹
₹
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.
Questions, answered
EBITDA FAQ
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