EBITDA Calculator
Strip financing and accounting effects out of profit. Enter your income statement lines to get EBITDA and your EBITDA margin.
Bookkeeping and reporting tools
Learn moreWhy investors use EBITDA
EBITDA — earnings before interest, taxes, depreciation and amortization — approximates the cash a business’s operations generate, independent of how it’s financed or its tax situation. It’s widely used to compare companies and to anchor acquisition valuations (as a multiple of EBITDA).
How it’s calculated & sources
EBITDA = net income + interest + taxes + depreciation + amortization. Margin = EBITDA ÷ revenue. It deliberately excludes capital structure and non-cash charges.
Benchmark: EBITDA margins vary widely by industry — software 25–40%, services 10–20%, retail 5–10% (Damodaran industry data).
Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.
Worked example
Net income of $200,000 plus $30k interest, $60k taxes, $40k depreciation and $10k amortization is $340,000 EBITDA — a 22.7% margin on $1.5M revenue.
Frequently asked questions
Is EBITDA the same as cash flow?
No — it ignores working-capital changes and capital expenditures, which can be large. It’s a proxy, not a substitute for a cash-flow statement.
Why add back depreciation?
Depreciation is a non-cash accounting charge for past purchases. Adding it back shows operating earnings before that charge.