EBITDA Calculator
Calculate EBITDA from net income or operating income, see your EBITDA margin, and apply an industry multiple to estimate enterprise value.
Core Financials
Used to calculate EBITDA margin.
Net Income Add-Backs
Depreciation & Amortization
Valuation (Optional)
Applied to EBITDA to estimate enterprise value.
Understanding the terms
- EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization — a proxy for operating cash flow that strips out financing structure and non-cash charges.
- EBITDA margin: EBITDA divided by revenue, showing how efficiently revenue converts into operating profit.
- EV/EBITDA multiple: A common valuation shortcut — multiply EBITDA by an industry-appropriate multiple to estimate what the business might be worth.
Frequently asked questions
What is EBITDA used for?
EBITDA is widely used to compare the operating profitability of companies with different capital structures, tax situations, or levels of fixed assets, since it strips out interest, taxes, depreciation, and amortization.
What's the difference between EBITDA and EBIT?
EBIT (operating income) already excludes interest and taxes but still includes depreciation and amortization as expenses. EBITDA goes a step further and adds those non-cash charges back too.
What's a good EBITDA margin?
It varies hugely by industry — software companies often see EBITDA margins above 30%, while retailers or low-margin distributors might see 5–10%. Compare against peers in the same sector rather than a universal benchmark.