Finance

EBITDA Calculator

Calculate EBITDA and EBITDA margin — the most common metric for business valuation.

Net Income ($)

Revenue ($)

Interest Expense ($)

Tax Expense ($)

Depreciation ($)

Amortization ($)

Formula:
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization
EBIT = Net Income + Interest + Taxes
EBITDA Margin = EBITDA / Revenue × 100

Why EBITDA Matters

EBITDA is the most widely used metric for business valuation and comparison. By adding back non-cash expenses (D&A) and financing/tax effects, it provides a cleaner view of operational cash flow generation.

Common EBITDA Multiples

Industry	EV/EBITDA Multiple
Technology/SaaS	15-30x
Healthcare	12-20x
Manufacturing	6-10x
Retail	5-8x