EBITDA Calculator

Calculate your Earnings Before Interest, Taxes, Depreciation, and Amortization with our premium financial tool. Free, accurate, and instant results.

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Financial Analysis

Your EBITDA is

$0.00

Earnings Before Interest, Taxes, Depreciation & Amortization

Gross Profit

$0.00

Operating Profit

$0.00

Expense Breakdown

Understanding EBITDA

What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a financial metric used to evaluate a company's operating performance without the impact of financial and accounting decisions. EBITDA provides a clear view of a company's profitability from core operations by removing non-operating expenses.

Why is EBITDA Important?

EBITDA is widely used by investors, analysts, and business owners because:

  • It measures operational efficiency and profitability
  • Allows comparison between companies with different capital structures
  • Provides insight into cash flow generation potential
  • Helps in valuation multiples (EV/EBITDA)
  • Useful for assessing companies with significant fixed assets

How to Use This EBITDA Calculator

Our free EBITDA calculator simplifies financial analysis. Simply enter:

  1. Total Revenue: All income generated by the business
  2. Cost of Goods Sold (COGS): Direct costs of producing goods
  3. Operating Expenses (OPEX): Costs of running day-to-day operations

The calculator will instantly compute your EBITDA, Gross Profit, and Operating Profit. Use these metrics to assess your business performance, prepare financial reports, or make strategic decisions.

Frequently Asked Questions

What is a good EBITDA margin?

A "good" EBITDA margin varies by industry. Generally, a margin above 10% is considered healthy, but technology companies might have margins of 30-40%, while retail businesses might have 5-10%. Compare your margin with industry benchmarks for accurate assessment.

How does EBITDA differ from net income?

EBITDA excludes interest, taxes, depreciation, and amortization, while net income includes all expenses. EBITDA focuses on operational profitability, whereas net income represents the bottom-line profit after all expenses.

Can EBITDA be negative?

Yes, EBITDA can be negative when a company's operating expenses exceed its gross profit. This indicates that the core business operations are not generating sufficient revenue to cover operational costs.

Is EBITDA the same as cash flow?

No. EBITDA is a measure of operating profitability, while cash flow considers actual cash movements. EBITDA doesn't account for changes in working capital or capital expenditures, which are important for cash flow analysis.

How often should I calculate EBITDA?

Businesses should calculate EBITDA at least quarterly to monitor operational performance. Many companies track it monthly for more timely insights. Regular calculation helps identify trends and make proactive business decisions.