EBITDA Calculator (VND)
EBITDA stands for earnings before interest, taxes, depreciation and amortization. It is a proxy for how much a business earns from its core operations before you account for how it is financed (interest), what it owes the tax authority, and non-cash accounting charges like depreciation. In one line, EBITDA tries to answer a single question: stripped of capital structure and depreciation policy, how profitable is the operating engine itself?
Finance people reach for EBITDA because it lets you compare two companies in the same industry without the distortion of one carrying heavy debt and another running large fixed assets that generate big depreciation charges. For a company with 10.000.000.000 VND in revenue and 7.000.000.000 VND of operating expenses (excluding depreciation and amortization), EBITDA is 3.000.000.000 VND, an EBITDA margin of 30.0%. Subtract depreciation of 800.000.000 VND and amortization of 200.000.000 VND — 1.000.000.000 VND combined — and you arrive at EBIT of 2.000.000.000 VND (a 20.0% margin). That 1.000.000.000 VND of depreciation and amortization is exactly what EBITDA "adds back" relative to EBIT.
The calculator above takes your revenue, operating expenses, depreciation and amortization and instantly returns EBITDA, EBITDA margin and EBIT, with a waterfall chart that walks profit down from revenue to EBITDA to EBIT. A caveat: the figures on this page describe an illustrative company, not a real filing. EBITDA also has serious limits we spell out below — it is emphatically not cash flow, and it is one of the easier numbers to flatter.
How the calculator computes EBITDA, margin and EBIT
EBITDA and EBIT
The tool works top-down from revenue:
EBITDA = Revenue − Operating expenses (excluding depreciation & amortization)
EBIT = EBITDA − Depreciation − Amortization
| Symbol | Meaning |
|---|---|
| Revenue | Total net revenue (10.000.000.000 VND) |
| Operating expenses | COGS + selling + admin costs, with D&A stripped out (7.000.000.000 VND) |
| Depreciation (D) | Depreciation of tangible fixed assets (800.000.000 VND) |
| Amortization (A) | Amortization of intangibles and goodwill (200.000.000 VND) |
| EBITDA | Earnings before interest, taxes, depreciation & amortization |
| EBIT | Earnings before interest and taxes (operating profit) |
The crucial point: the operating expenses you enter here must already exclude depreciation and amortization. If your costs come straight from a statement that bundles D&A inside them, separate it out first, or EBITDA will be understated. The alternative route is bottom-up: take net income and add back interest, taxes, depreciation and amortization — both methods must reconcile to the same EBITDA.
EBITDA margin
EBITDA margin = EBITDA / Revenue
This is the share of revenue that survives down to EBITDA — a profitability ratio for the core operation. In the example: 3.000.000.000 ÷ 10.000.000.000 = 30.0%. A higher margin means each unit of revenue retains more before interest, taxes and depreciation. EBITDA margins are only meaningful within the same industry, because cost structures differ enormously across sectors.
What EBITDA adds back — and where it misleads
EBITDA adds back two things: (1) interest and taxes, which depend on financing and tax policy rather than operating skill; and (2) depreciation and amortization, which are non-cash accounting charges in the period. That is what makes EBITDA comparable across companies with different leverage and asset bases.
Here is the warning, though: EBITDA is not cash flow and not real profit. Adding back depreciation ignores the fact that assets wear out and must be replaced with real money (capex). A capital-intensive business — factories, infrastructure — can show a flattering EBITDA while free cash flow stays thin. EBITDA also ignores changes in working capital and the very real cost of interest if the company is heavily borrowed. Always read EBITDA alongside EBIT, net income and operating cash flow; never in isolation.
Worked example: from 10.000.000.000 VND revenue down to EBITDA and EBIT
Illustrative assumptions (a made-up company): net revenue 10.000.000.000 VND, operating expenses 7.000.000.000 VND (excluding D&A), depreciation 800.000.000 VND, amortization 200.000.000 VND.
| Line item | Value | Margin on revenue |
|---|---|---|
| Revenue | 10.000.000.000 | 100% |
| (−) Operating expenses | 7.000.000.000 | — |
| EBITDA | 3.000.000.000 | 30.0% |
| (−) Depreciation | 800.000.000 | — |
| (−) Amortization | 200.000.000 | — |
| EBIT | 2.000.000.000 | 20.0% |
Three takeaways.
- EBITDA = 3.000.000.000 VND. Revenue of 10.000.000.000 VND minus operating expenses of 7.000.000.000 VND. This is operating profit before the non-cash accounting charges.
- EBITDA margin = 30.0%. For every 100 VND of revenue, 30.0 VND survives to the EBITDA line. This is the figure you benchmark against peers.
- EBIT = 2.000.000.000 VND. Subtract depreciation of 800.000.000 VND and amortization of 200.000.000 VND (1.000.000.000 VND together) from EBITDA. The 1.000.000.000 VND gap between EBITDA and EBIT is the company's D&A burden — the more asset-heavy the business, the wider this gap.
Swap in your own company's numbers. To go beyond EBITDA, pair this with FiMo's profit-margin, WACC and startup-valuation tools to see what the business is worth once taxes, interest and reinvestment needs are taken out.
Frequently asked questions
What is EBITDA and how do you calculate it?
EBITDA is earnings before interest, taxes, depreciation and amortization — a proxy for profit from a company's core operations, stripped of financing decisions and non-cash accounting charges. Top-down: EBITDA = Revenue − Operating expenses (excluding depreciation & amortization). Worked example: revenue of 10.000.000.000 VND minus 7.000.000.000 VND of operating expenses gives EBITDA of 3.000.000.000 VND.
How is EBITDA margin calculated and what is a good margin?
EBITDA margin = EBITDA / Revenue, the share of revenue that survives to the EBITDA line. In the example: 3.000.000.000 ÷ 10.000.000.000 = 30.0%. There is no single "good" number across industries — retail typically runs thin margins, software and services run fat ones. Compare EBITDA margins only within the same sector, and always look at the multi-year trend rather than one snapshot.
What is the difference between EBITDA and EBIT?
EBIT (operating profit) has already subtracted depreciation and amortization; EBITDA adds those two back. The gap between them equals total depreciation plus amortization. In the example: EBITDA of 3.000.000.000 VND, less depreciation of 800.000.000 VND and amortization of 200.000.000 VND (1.000.000.000 VND together), gives EBIT of 2.000.000.000 VND. The more asset-heavy the business, the wider the EBITDA-to-EBIT gap.
Is EBITDA the same as cash flow?
No — this is the single most common misconception. EBITDA adds back depreciation as if assets never wear out, but in reality they must be replaced with real money (capex). EBITDA also ignores working-capital changes and the actual interest and taxes a company pays. A capital-intensive business can post a strong EBITDA while free cash flow stays thin. Read EBITDA alongside operating cash flow and net income, not as a stand-in for cash.
Should the operating expenses I enter include depreciation?
No — strip depreciation and amortization out first. The tool computes EBITDA = revenue − operating expenses, then subtracts depreciation and amortization separately to reach EBIT. If you enter expenses that already bundle D&A, EBITDA will be understated because depreciation gets deducted twice. When pulling numbers off an income statement, separate the D&A line from COGS and admin costs before entering them here.
Why do investors use EBITDA for valuation?
Because EBITDA removes the effects of leverage, taxes and depreciation policy, it lets investors compare operating performance across companies with different capital structures — and it underpins the popular EV/EBITDA multiple. The flip side is that adding back depreciation can make a capital-intensive company look healthier than it is. Use EBITDA as a starting point, then combine it with WACC, free cash flow and a full valuation for the complete picture.