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Miraç Özdemir
Income Statement & Profitability

EBITDA Calculator: Gross Profit, Operating Profit and Net Margin

Starting from gross sales, calculates net sales, gross profit, operating profit (EBIT), EBITDA, profit before tax and net profit, with the margin at each level, in income statement order.

Version 1

Things to keep in mind:

  • EBITDA is not cash flow; growth in working capital, capital expenditure and tax payments reduce cash separately.
  • One-off items entered in the "other" line are excluded from EBITDA; adjusted EBITDA definitions vary by company.
  • Tax expense is entered as an amount; use the Corporate Tax tool to calculate corporate tax.
  • This tool is for information only and does not replace official financial statements, tax returns or investment advice.

Calculator

Sales and cost of sales

TRY

Domestic and export sales plus other revenue (excluding VAT).

TRY

Sales returns, discounts and other deductions.

TRY

Cost of products, goods and services sold.

Operating expenses

TRY

Research and development, marketing, selling and distribution, and general administrative expenses.

TRY

Depreciation included in cost of sales and operating expenses.

Non-operating items and tax

TRY

Other ordinary income minus ordinary expenses; enter a negative value for a net expense.

TRY

Interest and FX loss expenses minus finance income; enter a negative value for net income.

TRY

Tax charge for the period (including deferred tax); enter a negative value for a tax credit.

After the first calculation, the result updates automatically when you change a value.

Result

Enter the values and press Calculate to see the result here.

About this tool

EBITDA (earnings before interest, taxes, depreciation and amortisation; FAVÖK in Turkish) shows the profit a business generates from its core operations independently of its financing structure, taxes and depreciation policy. It is therefore widely used to compare companies with different debt levels, in credit assessment (net debt / EBITDA) and in valuation (EV / EBITDA).

The tool follows the income statement order of the Turkish uniform chart of accounts:

Formulas

  • Net sales = Gross sales − Sales deductions (returns, discounts)
  • Gross profit = Net sales − Cost of sales
  • Operating profit (EBIT) = Gross profit − Operating expenses
  • EBITDA = EBIT + Depreciation and amortisation
  • Profit before tax = EBIT + Other operating income/expense (net) − Finance expense (net)
  • Net profit = Profit before tax − Tax expense
  • Margin at each level = the profit figure / Net sales × 100

Example: with gross sales of 10,500,000 TRY, sales deductions of 500,000 TRY, cost of sales of 6,500,000 TRY and operating expenses of 1,800,000 TRY, gross profit is 3,500,000 TRY (35%) and EBIT 1,700,000 TRY (17%). If costs and expenses include 400,000 TRY of depreciation, EBITDA is 2,100,000 TRY with a 21% EBITDA margin. With 100,000 TRY net other income, 300,000 TRY finance expense and 375,000 TRY tax, net profit falls to 1,125,000 TRY (11.25%).

Note: EBITDA is not a statutory line item and is not cash flow; changes in working capital, capital expenditure and tax payments affect cash separately — use the Free Cash Flow tool for those. Listed companies may define EBITDA differently (e.g. whether other operating income/expense is included).

How to use

  1. Enter gross sales and any sales deductions (returns, discounts).
  2. Enter cost of sales and operating expenses (marketing, general administration, R&D).
  3. Enter the depreciation and amortisation included in costs and expenses.
  4. Enter net other operating income/expense, net finance expense and tax expense if any (negative values for income or a tax credit).
  5. Press Calculate.

Notes

Amounts are rounded to the cent and margins to 2 decimals (HALF_UP). If net sales are zero, margins show 0 (not computable). Depreciation is only added back for EBITDA; it is not deducted again from costs or expenses because it is assumed to be included in them. Tax expense is the period tax charge from the income statement (including deferred tax); the tool does not compute tax itself.

Sources

Frequently asked questions

5 questions

  1. EBITDA = Operating profit (EBIT) + Depreciation and amortisation, where operating profit is net sales less cost of sales and operating expenses. In short: net sales − costs and operating expenses excluding depreciation.

Next step

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