📊 EBITDA Calculator
Calculate EBITDA and EBITDA margin
Excluding D&A
How to Use This Calculator
Enter Revenue and Costs
Input the total revenue, cost of goods sold (COGS), operating expenses (excluding D&A), depreciation, and amortization from your income statement.
Review EBITDA
See the EBITDA (earnings before interest, taxes, depreciation, and amortization) and EBITDA margin. EBITDA shows operating profitability by excluding financing, tax, and accounting method effects.
Use for Analysis
Use EBITDA for business valuation, comparing operating performance across companies, and analyzing operating profitability. EBITDA is widely used in M&A, investment analysis, and financial planning.
Formula
EBIT = Revenue - COGS - Operating Expenses
EBITDA = EBIT + Depreciation + Amortization
EBITDA Margin = (EBITDA / Revenue) × 100
Example Calculation:
If revenue $1,000,000, COGS $400,000, operating expenses $300,000, depreciation $50,000, amortization $20,000:
• EBIT = $1,000,000 - $400,000 - $300,000 = $300,000
• EBITDA = $300,000 + $50,000 + $20,000 = $370,000
• EBITDA margin = ($370,000 / $1,000,000) × 100 = 37%
About EBITDA Calculator
An EBITDA calculator helps you calculate earnings before interest, taxes, depreciation, and amortization. EBITDA measures operating performance by removing the effects of financing (interest), taxes, and accounting methods (depreciation and amortization). EBITDA is widely used for company valuation, M&A transactions, and comparing operating performance across companies with different capital structures and tax situations. EBITDA shows the cash-generating ability of operations and is a key metric in financial analysis and business valuation.
When to Use This Calculator
- Business Valuation: Calculate EBITDA for company valuation
- M&A Transactions: Analyze EBITDA for mergers and acquisitions
- Performance Comparison: Compare operating performance across companies
- Financial Analysis: Analyze operating profitability and cash generation
Understanding EBITDA
- Operating Performance: Measures operating profitability
- Excludes Interest: Excludes financing costs
- Excludes Taxes: Excludes tax effects
- Excludes D&A: Excludes depreciation and amortization (non-cash expenses)
Why Use Our Calculator?
- ✅ Business Valuation: Calculate EBITDA for valuation
- ✅ M&A Analysis: Analyze EBITDA for transactions
- ✅ Performance Comparison: Compare operating performance
- ✅ Financial Analysis: Analyze operating profitability
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is EBITDA?
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures operating performance by removing the effects of financing, taxes, and accounting methods. EBITDA = EBIT + Depreciation + Amortization. EBITDA is widely used for company valuation, M&A transactions, and comparing operating performance across companies with different capital structures and tax situations. EBITDA shows the cash-generating ability of operations.
Why is EBITDA used for valuation?
EBITDA is used for valuation because it: (1) Shows operating performance - focuses on core operations, (2) Comparable - allows comparison across companies with different capital structures, (3) Cash proxy - approximates operating cash flow, (4) Common metric - widely used in M&A and investment analysis. Enterprise Value / EBITDA multiples are commonly used for business valuation. However, EBITDA has limitations and should be used alongside other metrics.
What are EBITDA limitations?
EBITDA limitations include: (1) Ignores capital expenditures (CapEx) - doesn't account for maintenance and growth investments, (2) Ignores working capital changes - doesn't account for changes in inventory, receivables, payables, (3) Can mask cash flow problems - high EBITDA doesn't guarantee good cash flow, (4) Not a GAAP measure - not standardized, can be manipulated, (5) Ignores debt service - doesn't account for interest payments. Always look at EBITDA alongside free cash flow and other metrics.
How is EBITDA different from net income?
EBITDA excludes interest, taxes, depreciation, and amortization, while net income includes all expenses and taxes. The progression is: EBITDA → EBIT (subtract D&A) → EBT (subtract Interest) → Net Income (subtract Taxes). EBITDA shows operating performance, while net income shows final profit after all expenses. EBITDA is useful for comparing operating performance, while net income shows actual profit available to shareholders.