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EBITDA Calculator

Strip financing and accounting effects out of profit. Enter your income statement lines to get EBITDA and your EBITDA margin.

Example: with Net income $200,000 · Interest $30,000 · Taxes $60,000 · Depreciation $40,000 → EBITDA: $340,000.

  • EBITDA margin22.7%
  • Total add-backs$140,000

Computed by the calculator below using its default values. Change any input to see your own numbers.

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EBITDA
EBITDA margin
Total add-backs

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Why investors use EBITDA

EBITDA — earnings before interest, taxes, depreciation and amortization — approximates the cash a business’s operations generate, independent of how it’s financed or its tax situation. It’s widely used to compare companies and to anchor acquisition valuations (as a multiple of EBITDA).

How it’s calculated & sources

EBITDA = net income + interest + taxes + depreciation + amortization. Margin = EBITDA ÷ revenue. It deliberately excludes capital structure and non-cash charges.

Benchmark: EBITDA margins vary widely by industry — software 25–40%, services 10–20%, retail 5–10% (Damodaran industry data).

Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.

Frequently asked questions

Is EBITDA the same as cash flow?

No — it ignores working-capital changes and capital expenditures, which can be large. It’s a proxy, not a substitute for a cash-flow statement.

Why add back depreciation?

Depreciation is a non-cash accounting charge for past purchases. Adding it back shows operating earnings before that charge.