EBITDA Calculator
Calculate your business's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for accurate business valuation and investment analysis.
EBITDA Calculator
Important Disclaimer
This EBITDA calculator provides estimates only. Actual business valuations may vary based on market conditions, industry standards, and specific business factors. This tool is for informational purposes and should not replace professional financial advice. Consult with a qualified business valuator or accountant for accurate valuations.
What is EBITDA?
EBITDA is a key financial metric used to evaluate a business's operating performance and profitability before accounting for financing and accounting decisions.
Operating Performance
Measures core business profitability before interest, taxes, depreciation, and amortization.
Business Valuation
Used by investors and buyers to assess business value and compare companies.
Cash Flow Analysis
Provides insight into operational cash generation and business sustainability.
Investment Decisions
Helps evaluate investment opportunities and business acquisition potential.
How to Calculate EBITDA
Start with Revenue
Use your total annual revenue from business operations.
Subtract Cost of Goods Sold
Remove direct costs associated with producing goods or services.
Subtract Operating Expenses
Remove all operating expenses like salaries, rent, utilities, and marketing.
Add Back Depreciation & Amortization
Add back non-cash expenses like depreciation and amortization.
EBITDA Formula
Why EBITDA Matters
- • Business Valuation: Buyers often use EBITDA multiples to determine business value
- • Performance Comparison: Compare your business to industry standards
- • Investment Analysis: Evaluate potential returns and risks
- • Lending Decisions: Banks use EBITDA to assess loan eligibility
- • Operational Focus: Shows core business performance without accounting distortions
Industry EBITDA Benchmarks
Compare your EBITDA margin against industry standards to understand your business performance.
Restaurants & Food Service
Retail
Manufacturing
Technology
Healthcare
Construction
Ready to Value Your Business?
Use our EBITDA calculator to understand your business value, then explore our commercial property listings to find your next investment.