EBITDA Calculator
Calculate your company's Earnings Before Interest, Taxes, Depreciation, and Amortization. Analyze financial performance and profitability with this essential business metric.
Note: Enter your financial data in the form below. All values should be in the same currency unit (e.g., USD, EUR, etc.). You can use either the standard method (revenue and expenses) or the alternative method (net income with adjustments).
About the EBITDA Calculator
What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's overall financial performance and is used as an alternative to simple earnings or net income. EBITDA is particularly useful when comparing companies within the same industry, as it eliminates the effects of financing and accounting decisions that could distort comparisons.
Why Calculate EBITDA?
- Provides a clearer picture of operational performance
- Makes it easier to compare companies with different capital structures
- Commonly used by investors and analysts to evaluate businesses
- Often used in business valuations and acquisition scenarios
- Helps in determining a company's ability to generate cash flow from operations
Calculation Methods
Standard Method: Revenue - Cost of Goods Sold (COGS) - Operating Expenses (excluding depreciation and amortization)
Alternative Method: Net Income + Interest + Taxes + Depreciation + Amortization
EBITDA Limitations
- Does not account for changes in working capital
- Ignores the cost of assets (capital expenditures)
- Not recognized under Generally Accepted Accounting Principles (GAAP)
- May overstate a company's cash flow capability
- Different companies may calculate EBITDA differently
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial professional before making investment decisions. The results provided by this calculator are based on the information you input and may not reflect all aspects of your financial situation.