EBITDA Calculator
Operating earnings before non-cash items.
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ⓘ Live results
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
- 1Enter revenue and net income.
- 2Add back interest, taxes and D&A from the income statement.
- 3Compare the margin to industry norms.
Worked example
Using the values the calculator loads with:
Inputs
- Revenue2400000 $
- Net income180000 $
- Interest expense45000 $
- Taxes60000 $
- Depreciation & amortisation120000 $
Results
- EBITDA$405,000.00
- EBITDA margin16.88%
- Add-backs total$225,000.00
- Net margin7.5%
- Value at 5× EBITDA$2,025,000.00
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.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.