Plain-language questions
Ask for EBITDA per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Finance
EBITDA: formula and example.
EBITDA stands for earnings before interest, taxes, depreciation and amortisation. It shows what day-to-day operations generate, regardless of how the company is financed or how much it invested in the past. Lenders and buyers often use EBITDA as a starting point for financing and valuation.
EBITDA formula
Revenue − cost of goods sold − staff costs − other operating expenses (excluding depreciation, amortisation, interest and tax)
Worked example
In 2025 Acme Groothandel had revenue of €12,000,000, cost of goods sold of €8,400,000, staff costs of €1,800,000 and other operating expenses of €840,000. EBITDA is €12,000,000 − €8,400,000 − €1,800,000 − €840,000 = €960,000. Depreciation (€240,000), interest and tax are left out.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A rising EBITDA means operations are generating more. Because it is an amount, compare it mainly with last year and with budget; to compare companies or periods with different revenue, use EBITDA margin. EBITDA is not cash flow: capital expenditure, changes in working capital and tax payments are not included.
Pitfalls with EBITDA
- Treating EBITDA as cash flow, when capital expenditure, stock build-up and unpaid receivables are left out.
- Showing an 'adjusted' EBITDA without stating which items have been excluded.
- Handling lease costs inconsistently: depending on the accounting rules they sit in operating expenses or in depreciation and interest.
SQL & DAX
Calculating EBITDA in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('month', entry_date)::date AS month,
SUM(CASE WHEN account_group = 'revenue' THEN amount ELSE -amount END) AS ebitda,
SUM(SUM(CASE WHEN account_group = 'revenue' THEN amount ELSE -amount END))
OVER (ORDER BY date_trunc('month', entry_date)) AS ebitda_ytd
FROM gl_entries
WHERE account_group IN ('revenue', 'cogs', 'personnel', 'other_opex')
AND entry_date >= date_trunc('year', current_date)
GROUP BY 1
ORDER BY 1;EBITDA =
CALCULATE(SUM(GL[Amount]), GL[AccountGroup] = "revenue")
- CALCULATE(SUM(GL[Amount]), GL[AccountGroup] IN {"cogs", "personnel", "other_opex"})
EBITDA vs LY % =
VAR LastYear = CALCULATE([EBITDA], SAMEPERIODLASTYEAR('Date'[Date]))
RETURN DIVIDE([EBITDA] - LastYear, LastYear)In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate EBITDA?
Subtract cost of goods sold, staff costs and other operating expenses from revenue, but not depreciation, amortisation, interest and tax. Alternatively, take operating profit (EBIT) and add back depreciation and amortisation. Both routes should give the same figure.
What is the difference between EBITDA and EBIT?
EBIT is operating profit after depreciation and amortisation, EBITDA is the profit before them. The difference is exactly the depreciation and amortisation charge. EBIT reflects the wear of assets, EBITDA does not.
Is EBITDA the same as cash flow?
No, EBITDA approximates what operations generate, but it is not cash flow. Capital expenditure, changes in stock, receivables and payables, and tax paid are all missing. Use operating or free cash flow for that.
Further reading
- KPI libraryFinancial KPIs: formulas and examplesFinancial KPIs show how profitable, liquid and solvent an organisation is. The data usually comes from your accounting package or ERP: general ledger entries, invoices and open items.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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