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Operating Profit to EBITDA Calculator

Add depreciation and amortization back to operating profit.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Add depreciation and amortization expenses to operating profit, provided those expenses were already deducted in that profit figure. Operating profit of 50,000 plus 8,000 depreciation and 2,000 amortization gives 60,000.

EBITDA = operating profit + depreciation + amortization

Worked example

Enter these known values and leave the other values blank.

Operating profit
50000 USD
Depreciation expense
8000 USD
Amortization expense
2000 USD
EBITDA
60000 USD

Assumptions and limitations

  • Use values from a consistent period, scope and currency. The stated formula defines this simplified model; the explanation describes quantities it leaves out.

Common questions

Is EBITDA cash flow?

No. EBITDA does not account for working-capital movements, capital spending, taxes or financing payments. It should not be treated as cash available to spend.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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