Finance
EBITDA Calculator
Compute EBITDA from net income, EBIT, or revenue. Includes EBITDA margin, EBIT margin, EV/EBITDA multiple, and a strong/good/weak benchmark.
Inputs
EBITDA
$210.00
Net Income + Interest + Taxes + Depreciation + Amortization
- EBIT
- $150.00
- EBITDA Margin
- 21% (strong)
- EBIT Margin
- 15%
- EV / EBITDA
- 9.52x
Frequently Asked Questions about the EBITDA Calculator
What is EBITDA and why does it matter?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It strips out financing decisions (interest), tax regimes, and non-cash accounting (D&A) to give a cleaner picture of operating cash generation. Private equity, lenders, and M&A buyers use it heavily as a proxy for cash flow.
How do I compute EBITDA from net income?
Add back interest, taxes, depreciation, and amortization: EBITDA = NI + Interest + Taxes + D + A. For a company with $100 net income, $20 interest, $30 taxes, $50 depreciation, and $10 amortization, EBITDA is $210.
What is a good EBITDA margin?
Industry-dependent. Software and SaaS companies often hit 30 to 40 percent. Mature manufacturing and retail typically run 8 to 15 percent. As a rough heuristic, above 20 percent is strong, 10 to 20 percent is good, and below 10 percent is weak for most industries.
What is EV / EBITDA used for?
Enterprise value divided by EBITDA is a common valuation multiple. It tells you roughly how many years of EBITDA you are paying for the whole business. Tech and high-growth firms can trade at 15 to 30x; mature businesses often sit at 5 to 12x. Use it for peer comparison within an industry.
What does EBITDA leave out?
Capital expenditures (capex), working capital changes, and the fact that interest and taxes are real cash outflows. EBITDA can flatter capital-intensive businesses that need heavy capex, and it does not equal free cash flow. Read it alongside the cash-flow statement, not in isolation.