Calculating your EBITDA is straightforward once you know the EBITDA formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the EBITDA Calculator.
What is EBITDA?
The EBITDA calculation tells you your EBITDA from a few simple inputs. The figure you are solving for here is the EBITDA, expressed in INR.
The EBITDA formula
The core formula is:
EBITDA = Net profit + Interest + Taxes + Depreciation + AmortizationHere is what each input means:
- Net profit — a money amount. Example: ₹10,00,000.
- Interest — a money amount. Example: ₹2,00,000.
- Taxes — a money amount. Example: ₹3,00,000.
- Depreciation — a money amount. Example: ₹1,50,000.
- Amortization — a money amount. Example: ₹50,000.
How to calculate it step by step
- Write down the net profit (for example, ₹10,00,000).
- Write down the interest (for example, ₹2,00,000).
- Write down the taxes (for example, ₹3,00,000).
- Write down the depreciation (for example, ₹1,50,000).
- Write down the amortization (for example, ₹50,000).
- Apply the formula above to get your EBITDA.
- Double-check the result with the EBITDA Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Net profit | ₹10,00,000 |
| Interest | ₹2,00,000 |
| Taxes | ₹3,00,000 |
| Depreciation | ₹1,50,000 |
| Amortization | ₹50,000 |
| EBITDA | ₹17,00,000 |
With net profit of ₹10,00,000, interest of ₹2,00,000, taxes of ₹3,00,000 and depreciation of ₹1,50,000, the EBITDA works out to ₹17,00,000.
Example 2
With net profit of ₹20,00,000, interest of ₹2,00,000, taxes of ₹3,00,000 and depreciation of ₹1,50,000, the EBITDA works out to ₹27,00,000.
| Result | Value |
|---|---|
| EBITDA | ₹27,00,000 |
Example 3
With net profit of ₹5,00,000, interest of ₹2,00,000, taxes of ₹3,00,000 and depreciation of ₹1,50,000, the EBITDA works out to ₹12,00,000.
| Result | Value |
|---|---|
| EBITDA | ₹12,00,000 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
Prefer not to do the maths by hand? — the EBITDA Calculator does it instantly, for free, with the formula and a worked example built in.
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