EBITDARM Calculator - Earnings Before Interest, Tax, Depreciation, Amortization, Rent, and Management Costs

Written by:
PK

Below is an EBITDARM calculator, or Earnings Before Interest, Tax, Depreciation, Amortization, Rental Costs, and Management Costs Calculator. Enter a company's net income, interest expenses in the period, tax expenses, depreciation expenses, rent, management fees, and amortization expenses to compute its EBITDARM.

EBITDARM Calculator

What is EBITDARM?

EBITDARM, or Earnings Before Interest, Tax, Depreciation, Amortization, Rent, and Management Costs, is an extension of EBITDA to normalize for company choices in rent and management costs. Like EBITDAR with rent, companie can choose to in-house any management functions they need, or outsource them and take charges. For very specialized company comparisons, EBITDARM can better compare companies which took a different path to a business model.

Again, like EBITDAR, it's much less popular than EBIT and EBITDA.

EBITDARM Formula

The formula for EBITDARM is:

EBITDARM=net\ income+interest\ expense+\\\ tax\ expense+depreciation+\\amortization+rental\ costs\\+management\ costs

Where:

  • 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
  • Management Costs: Charges due for management services
      

PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK is in his mid-30s and works and lives in the Bay Area with his wife, two kids, and dog.

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