  # How To Calculate Operating Cash Flow From Ebitda 2021

### Ebitda = Net Income + Interest + Income Taxes + Depreciation + Amortization;

Unlike the first formula, which uses operating income. Ebitda = operating profit + depreciation + amortization. Ebitda= net income + interest + taxes + depreciation + amortization.

### The Total Is The Ebitda For The Company.

Both are acceptable under generally accepted accounting principles (gaap). Another way to calculate ebitda is by adding back interest, taxes, depreciation and amortization into your operating income. The direct method of cash flow calculation is more straightforward—reporting all major cash receipts and cash payments.

### Ebitda Is Easy To Calculate:

Before we discuss the differences, let’s review a few formulas: Because you can calculate net income without interest and taxes, you must first add them back to the amount. Ebitda = net income + interest + taxes + depreciation + amortization.

### A Basic Ebitda Example Can Be Found Below:

How to calculate operating cash flow. Starting with operating income, the formula is: Ebitda = net income + taxes + interest expense + depreciation & amortization.