Business

EBITDA Calculator

Operating earnings before non-cash items.

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Results update instantly as you type — no submit needed.

Results
EBITDA
$405,000.00
EBITDA margin
16.88%
Add-backs total
$225,000.00
Net margin
7.5%
Value at 5× EBITDA
$2,025,000.00

Quick answer

EBITDA strips out financing and accounting choices to show the cash-like operating profit of a business.

EBITDA = Net income + Interest + Taxes + D&A

How to use the EBITDA Calculator

  1. 1Enter revenue and net income.
  2. 2Add back interest, taxes and D&A from the income statement.
  3. 3Compare the margin to industry norms.

Frequently asked questions

Why do buyers use EBITDA?

It normalises for capital structure and tax position, making businesses comparable.

Is EBITDA the same as cash flow?

No — it ignores working capital changes and capital expenditure.