How to calculate EBITDA for your Company or Startups ?

 How to calculate EBITDA for your Company or Startups ?

Calculating your business’s EBITDA is usually a straightforward process, and you can typically do so with the information found on your existing financial reports. The two common methods of calculating EBITDA should arrive at the same conclusion most of the time. 

EBITDA​​ = Net Income + Interest + Taxes + Depreciation + Amortization

Net Income: Total income after expenses and deductions

EBITDA = Operating Profit + Depreciation + Amortization

Operating Profit: Total earnings excluding interest and tax deductions

Although EBITDA is an important metric and may even seem somewhat intimidating, it’s truly as simple as the calculations above. 

It’s just another way of looking at your earnings before factoring in non-operating cash outflows.

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