EBITDA Calculator
Evaluate your company’s core operating profitability. Instantly calculate Earnings Before Interest, Taxes, Depreciation, and Amortization.
Calculate Your EBITDA
Enter your financial statement figures below to instantly compute your EBITDA and EBITDA margin. This uses the standard ‘bottom-up’ add-back method.
Financial Inputs
Enter values from your income statement
Profitability Evaluation
Estimated operational cash flow generation
Understanding EBITDA Components
A breakdown of the financial metrics used to calculate your company’s true operational performance.
| Component | Description | Impact on EBITDA |
|---|---|---|
| Net Income | The final profit after all expenses, interest, and taxes. | Starting Base |
| Interest | Cost of borrowed funds (loans, bonds). | Added Back |
| Taxes | Corporate income tax expenses. | Added Back |
| Depreciation | Non-cash expense allocating the cost of tangible assets. | Added Back |
| Amortization | Non-cash expense allocating the cost of intangible assets. | Added Back |
EBITDA FAQ
Everything you need to know about calculating and interpreting EBITDA for business valuation.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a widely used metric to evaluate a company’s operating performance and core profitability, stripping out the effects of financing decisions, accounting choices, and tax environments.
The most common method is the ‘bottom-up’ approach: EBITDA = Net Income + Interest Expense + Tax Expense + Depreciation + Amortization. Alternatively, it can be calculated from the top down: Operating Income (EBIT) + Depreciation + Amortization.
EBITDA is crucial for valuation because it provides a clear view of a company’s operational cash flow generation. It allows investors and analysts to compare the profitability of companies across different industries, tax jurisdictions, and capital structures on a level playing field.
A ‘good’ EBITDA margin varies significantly by industry. However, as a general rule of thumb, an EBITDA margin above 15% is considered healthy, while margins above 20% indicate strong operational efficiency and profitability. Small businesses may naturally have lower margins during growth phases.
