EBITDA Calculator
Calculate EBITDA and EBITDA margin from income statement items. See EV/EBITDA multiple.
By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide
EBITDA
$370,000.00
EBITDA Calculation
| Net Income | $200,000.00 |
| + Interest | $50,000.00 |
| + Taxes | $80,000.00 |
| = EBIT | $330,000.00 |
| + Depreciation | $30,000.00 |
| + Amortization | $10,000.00 |
| = EBITDA | $370,000.00 |
Typical EV/EBITDA Multiples by Industry
Technology (SaaS): 15-25x
Healthcare: 10-15x
Manufacturing: 6-10x
Retail: 5-8x
Professional Services: 4-8x
Restaurants: 3-6x
Use the EBITDA Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, and it offers a quick read on how profitable a company's core operations are. Because it strips out financing and accounting choices, the figure helps gauge how much cash the underlying business generates on its own.
Arriving at the number means starting with Net Income and adding back Interest Expense, Tax Expense, Depreciation Expense, and Amortization Expense. Layering those items back onto the bottom line isolates operating performance by clearing away non-operating and non-cash effects.
One caution worth holding onto: EBITDA is not a GAAP measure and lends itself to manipulation, so it's best read alongside other financial metrics rather than in isolation. It also shouldn't be mistaken for free cash flow, since it ignores capital expenditures and shifts in working capital that genuinely affect the cash a business keeps.
Example: Calculating EBITDA for a Manufacturing Company
- 1 A manufacturing company has a Net Income of $500,000, Interest Expense of $50,000, Tax Expense of $120,000, Depreciation of $80,000, and Amortization of $20,000.
- 2 EBITDA = Net Income + Interest Expense + Tax Expense + Depreciation + Amortization. So, EBITDA = $500,000 + $50,000 + $120,000 + $80,000 + $20,000.
- 3 The calculated EBITDA for the manufacturing company is $770,000.
- 4 This $770,000 represents the company's operational earnings before considering financing costs, taxes, and non-cash accounting deductions, providing a clear view of its core business performance.
Source: SBA — Business Guide · Last updated: April 2026
Frequently Asked Questions
What does EBITDA stand for and why do investors use it?
What is a good EBITDA margin for a small business?
How is EV/EBITDA different from P/E ratio?
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