What is the difference?

EBITDA vs Net Income

Earnings Before Interest, Taxes, Depreciation, and Amortization

Net Income

What is it?

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is one of a few profit metrics. At its simplest, EBITDA focuses only on operational profitability, ignoring non-cash expenses by adding them back to Net Income.

Net Income is an accounting term that refers to the total revenue minus the total expenses for any given period. Net Income is one of the best ways to determine a business' profitability and is often referred to as the bottom line. For Net Income, expenses to be deducted include Cost of Goods Sold (COGS), all operating expenses, and tax and interest costs.