Calculate Earnings Before Interest, Taxes, Depreciation, and Amortization
EBITDA is a financial metric that provides insight into a company's operational performance by excluding the impacts of interest, taxes, depreciation, and amortization.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a popular metric used to evaluate a business’s operational performance without the impact of capital structure, tax rates, or non-cash accounting items. To calculate EBITDA, start with net income and then add back interest, taxes, depreciation, and amortization. The formula is: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization. This gives buyers, investors, and operators a clearer picture of the company’s cash-generating ability from its core operations—before financing and accounting decisions distort the view. Use the calculator above to quickly estimate EBITDA based on your business financials or the financials provided by a business you are interested in acquiring.
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