This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
To calculate EBITDA, follow these steps:
Determine the company’s net income: Obtain the net income figure from the company’s income statement. Net income is the total revenue minus all operating expenses, interest, and taxes.
Add back interest, taxes, depreciation, and amortisation: Identify the interest expense, taxes, depreciation, and amortisation from the company’s financial statements. Add these values back to the net income obtained in step 1.
Calculate EBITDA: Sum up the net income, interest, taxes, depreciation, and amortisation figures to calculate the EBITDA.
The formula for calculating EBITDA is:
EBITDA = Net income + Interest + Taxes + Depreciation + Amortisation
EBITDA is commonly used as a measure of a company’s cash flow and profitability, as it provides insight into its operating performance without considering non-operating factors. However, it’s important to note that EBITDA has limitations and should be used alongside other financial metrics and analysis when evaluating a company’s financial health.
Disclaimer: Swoop Finance helps South African firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. We can introduce you to a panel of lenders, equity funds and grant agencies. Whichever lender you choose we may receive commission from them (either a fixed fee of fixed % of the amount you receive) and different lenders pay different rates. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop Finance (Pty) Ltd is registered with CIPC in South Africa (company number 2023/820661/07, registered address 21 Dreyer Street, Cape Town, South Africa, 7708).
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