EBITDA Calculator
Strip financing and accounting effects out of profit. Enter your income statement lines to get EBITDA and your EBITDA margin.
Example: with Net income $200,000 · Interest $30,000 · Taxes $60,000 · Depreciation $40,000 → EBITDA: $340,000.
- EBITDA margin22.7%
- Total add-backs$140,000
Computed by the calculator below using its default values. Change any input to see your own numbers.
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.
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.