EBITDA Calculator

Measure business profitability — earnings before interest, taxes, and non-cash charges

What is EBITDA? EBITDA strips out financing (interest), taxes, and accounting decisions (depreciation) to show the pure operating profitability of a business. It's the most common way to compare businesses across industries and sizes.

Why it matters: A business with $500K revenue and $200K EBITDA (40% margin) is far more profitable than one with $1M revenue and $100K EBITDA (10% margin). EBITDA lets you compare apples to apples.

Who it's for: Business buyers, investors, and owners benchmarking performance against industry peers.
Income Statement
Profitability Metrics
EBITDA
—
operating cash earnings
EBITDA Margin
—
as % of revenue
Net Income
—
after all deductions
Gross Profit
—
revenue - COGS
Operating Income (EBIT)
—
before interest & tax
Industry Benchmark
—
typical SaaS/software

EBITDA is a non-GAAP measure. Use alongside other metrics for complete financial analysis.

Business Valuation & Finance Tools

Tools that pair well with this calculator — selected by our team.

Lendio →
$75/funded loan — business expansion loans
Bankrate →
Business loan comparisons
ToolBest ForNetwork
Lendio$75/funded loanFlexOffers
BankrateBusiness loan comparisonsCJ Affiliate

We may earn a commission if you click above. Calculator is free to use.

Frequently Asked Questions

What is EBITDA?

EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's operating profitability by excluding non-operating costs and non-cash charges. Used to compare companies across industries.

What is a good EBITDA margin?

EBITDA margin = EBITDA / Revenue. 15-25% is average for most industries. Tech companies often see 25-40%+. A higher margin means more operating efficiency. Compare to industry peers, not just general benchmarks.

How is EBITDA used in business valuation?

EBITDA × Multiple = Enterprise Value. Multiples vary by industry (4-10x for typical SMBs, 10-20x for high-growth tech). Use EBITDA as a starting point — adjust for growth rate, customer concentration, and market conditions.

What is adjusted EBITDA?

Adjusted EBITDA adds back one-time expenses, owner perks, and non-recurring items to normalize earnings. Sellers often use adjusted EBITDA to justify higher valuations. Buyers scrutinize these adjustments carefully.