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Tools / Business / EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) Calculator
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📊 Business

EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) Calculator

EBITDA is a measure of a company's core profitability excluding financing decisions, accounting methods, and tax environments. It is widely used for comparing businesses in the same industry and for valuation multiples.

EBITDA:

EBITDA Margin:

Enter values and click Calculate to see chart

How to Use This Tool

  1. Enter total revenue.
  2. Enter cost of goods sold.
  3. Enter operating expenses.
  4. Enter depreciation and amortization.
  5. Enter interest expense and income taxes.
  6. Click Calculate.

The Formula

EBITDA = Revenue - COGS - Operating Expenses + Depreciation + Amortization. Or: EBITDA = Net Income + Interest + Taxes + D&A.

Why It Matters

Your business has $500K revenue, $200K COGS, $150K operating expenses, $20K depreciation, and $10K amortization. Your EBITDA is $170K with a 34% margin. At a 5x EBITDA valuation multiple, your business core operations are worth $850K — before accounting for debt, cash, or intangible assets.

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