Below is an EBITDAR calculator, or Earnings Before Interest, Tax, Depreciation, Amortization, and Rental Costs Calculator. Enter a company's net income, interest expenses in the period, tax expenses, depreciation expenses, rent, and amortization expenses to compute its EBITDAR.
What is EBITDAR?
EBITDAR, or Earnings Before Interest, Tax, Depreciation, Amortization, and Rent, is an extension of EBITDA to add rental charges. As some companies choose to own property and others don't, in some cases it lets you compare companies with different asset policies – as one company pays rent and another depreciates buildings.
EBITDAR is a specialized metric, and interest, rent, and taxes are all real charges. While useful when evaluating a complete company for purchase in some situations, it's much less popular than EBIT and EBITDA. EBITDARM goes a step further and adds back management fees – and is even further removed from earnings.
The formula for EBITDAR is:
EBITDAR=net\ income+interest\ expense+\\\ tax\ expense+depreciation+\\amortization+rental\ costs
- Net Income: Net income from the income statement
- Interest Expense: Amount the company paid in the period to service its debt
- Tax Expense: Amount paid in taxes in the period
- Amortization: Amount the company took in amortization charges in the period
- Depreciation: Amount the company took in depreciation charges in the period
- Rental Costs: Amount the company paid in rent in the current period