EBITDA Calculator Online

What is EBITDA?

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a financial metric that measures a company's operating performance. It excludes the costs of financing and accounting decisions, providing a clearer picture of profitability.

How to Calculate EBITDA?

The EBITDA formula is:

EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

Why is EBITDA Important?

• Compare Profitability: Useful for comparing companies across industries by removing non-operating factors.
• Focus on Operations: Provides a clearer picture of operating efficiency.
• Valuation Tool: Often used by investors to assess a company's value.

Example Calculation

If your net income is $50,000, interest is $10,000, taxes are $8,000, depreciation is $5,000, and amortization is $2,000:

EBITDA = $50,000 + $10,000 + $8,000 + $5,000 + $2,000 = $75,000