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EBITDA Calculator

Compute a proxy for operating cash flow by adding back non-cash charges to net income — widely used in business valuation.

EBITDA Calculator

EBITDA Results

EBITDA

EBITDA Margin

Operating Income

Gross Profit

Calculation Breakdown

About EBITDA

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a financial metric used to evaluate a company's operating performance by excluding financing and accounting decisions.

Calculation Methods:

  • From Revenue: Revenue - COGS - Operating Expenses + Other Income
  • From Net Income: Net Income + Interest + Taxes + Depreciation + Amortization

Key Uses:

  • • Compare companies across industries
  • • Evaluate operational efficiency
  • • Business valuation multiples
  • • Debt service coverage analysis

EBITDA Margin:

  • • Formula: (EBITDA ÷ Revenue) × 100
  • • Higher margins indicate better efficiency
  • • Industry benchmarks vary significantly
  • • Track trends over time

Limitations:

  • • Ignores capital expenditure needs
  • • Not a substitute for cash flow
  • • Can mask debt service issues
  • • May overstate profitability

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