EBITDA Calculator
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the most widely used measure of operating profitability in business valuation. This calculator adds back interest, taxes, depreciation, and amortization to net income to arrive at EBITDA. Enter revenue to see the EBITDA margin. Enter an EV/EBITDA multiple to estimate implied enterprise value. Used by private equity, lenders, and acquirers to compare companies across industries and capital structures.
EBITDA formula
EBITDA = Net income + Interest + Taxes + Depreciation + Amortization
EBIT = Net income + Interest + Taxes
EBITDA margin = EBITDA / Revenue x 100%
Enterprise value = EBITDA x EV/EBITDA multiple
EBITDA calculator: frequently asked questions
What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's core operating profitability by removing the effects of financing decisions, tax environments, and non-cash accounting entries.
How is EBITDA calculated?
EBITDA = Net income + Interest expense + Income tax expense + Depreciation + Amortization. Alternatively, it can be calculated as Operating income (EBIT) + Depreciation + Amortization.
What is a typical EV/EBITDA multiple?
EV/EBITDA multiples vary by industry and market conditions. Publicly traded companies typically trade between 8x and 15x EBITDA. Technology companies may trade at 20x or higher. Use company-specific and industry comparables from public filings, not this calculator alone.
What is EBITDA margin?
EBITDA margin = EBITDA / Revenue x 100%. It shows what percentage of revenue is converted to operating earnings before non-operating items. A higher margin indicates stronger operating efficiency.
Is EBITDA the same as operating cash flow?
No. EBITDA does not account for changes in working capital or capital expenditures. Operating cash flow (from the cash flow statement) is a more accurate measure of actual cash generation.
Official sources
- U.S. Securities and Exchange Commission: Beginners' guide to financial statements.
- SEC: Conditions for use of non-GAAP financial measures.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.