EBITDA Calculator

Calculate EBITDA and EBITDA margin from income statement items. See EV/EBITDA multiple.
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EBITDA

$370,000.00

EBITDA Calculation

Net Income$200,000.00
+ Interest$50,000.00
+ Taxes$80,000.00
= EBIT$330,000.00
+ Depreciation$30,000.00
+ Amortization$10,000.00
= EBITDA$370,000.00

Typical EV/EBITDA Multiples by Industry

Technology (SaaS): 15-25x

Healthcare: 10-15x

Manufacturing: 6-10x

Retail: 5-8x

Professional Services: 4-8x

Restaurants: 3-6x

Use the EBITDA Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

An EBITDA Calculator helps businesses quickly determine their Earnings Before Interest, Taxes, Depreciation, and Amortization. This metric is crucial for assessing a company's operational profitability and its ability to generate cash from its core business, independent of financing or accounting decisions.

The calculator sums Net Income with Interest Expense, Tax Expense, Depreciation Expense, and Amortization Expense. This 'add-back' process isolates operating income by removing non-operating and non-cash items from the bottom line.

Remember that EBITDA is not a GAAP measure and can be manipulated; always consider other financial metrics alongside it. A common mistake is to confuse EBITDA with free cash flow, as EBITDA doesn't account for capital expenditures or changes in working capital.

Example: Calculating EBITDA for a Manufacturing Company

  1. 1 A manufacturing company has a Net Income of $500,000, Interest Expense of $50,000, Tax Expense of $120,000, Depreciation of $80,000, and Amortization of $20,000.
  2. 2 EBITDA = Net Income + Interest Expense + Tax Expense + Depreciation + Amortization. So, EBITDA = $500,000 + $50,000 + $120,000 + $80,000 + $20,000.
  3. 3 The calculated EBITDA for the manufacturing company is $770,000.
  4. 4 This $770,000 represents the company's operational earnings before considering financing costs, taxes, and non-cash accounting deductions, providing a clear view of its core business performance.

Source: SBA — Business Guide · Last updated: April 2026

Frequently Asked Questions

What does EBITDA stand for and why do investors use it?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Investors use it to compare operating profitability across companies by removing the effects of financing decisions, tax jurisdictions, and accounting methods.
What is a good EBITDA margin for a small business?
A healthy EBITDA margin varies by industry but generally 10-20% is solid for most small businesses. Software and tech companies often exceed 25%, while restaurants and retail typically range from 5-15%.
How is EV/EBITDA different from P/E ratio?
EV/EBITDA uses enterprise value (equity plus debt minus cash) divided by EBITDA, making it capital-structure neutral. P/E uses stock price divided by net earnings, which is affected by debt levels and tax strategies. EV/EBITDA is better for comparing companies with different leverage.

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