EBITDA Calculator
Free EBITDA calculator. Calculate EBITDA, EBITDA margin, gross profit, and operating income. Essential tool for business valuation and financial analysis.
About This Calculator
EBITDA is one of the most commonly used metrics for evaluating business performance and valuation. This calculator walks through the full calculation from revenue to EBITDA, showing each step including gross profit, operating income, and the impact of depreciation and amortization.
The waterfall chart visualizes how revenue flows through costs and expenses to arrive at EBITDA, making it easy to understand your cost structure.
Frequently Asked Questions
What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's operating performance from core business operations.
What is a good EBITDA margin?
Technology 20-40%, healthcare 15-25%, manufacturing 10-20%, retail 5-10%. Above 15% is generally healthy.
How is EBITDA different from net income?
EBITDA shows operating profitability before interest, taxes, and non-cash expenses. Net income includes all expenses.
Why is EBITDA important for valuation?
Companies are often valued at 5-15x EBITDA. It eliminates effects of financing and accounting decisions.
What are the limitations of EBITDA?
It ignores working capital, capital expenditure, debt payments, and can make capital-intensive companies look more profitable.
How to improve EBITDA?
Increase revenue, reduce COGS, control operating expenses, improve efficiency, and automate processes.