EBITDA Calculator: Quickly Compute Your Company’s Financial Performance
EBITDA equals operating profit plus non-cash depreciation and amortization. Analysts use it because 77 % of U.S. M&A deals quote EBITDA multiples (PwC 2023 M&A outlook). The free tool below adds your three inputs and shows the result instantly.
EBITDA Calculator
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How to use the tool
Enter EBIT: Type your operating profit before interest and tax—e.g., $5,750,000 or $980,000.
Add Depreciation: Input non-cash wear on equipment—e.g., $900,000 or $120,000.
Add Amortization: Input intangible-asset expense—e.g., $220,000 or $35,000.
Press “Calculate”: The calculator returns EBITDA instantly.
Median U.S. EBITDA margin for S&P 500 firms: 18 % (S&P Capital IQ, 2023).
EV/EBITDA multiples in global M&A averaged 11.5× in 2022 (KPMG Deal Tracker, 2023).
SEC asks public issuers to reconcile EBITDA to GAAP earnings under Regulation G (SEC, 2020).
IAS 36 uses EBITDA-like “value in use” for impairment testing (IFRS Foundation, 2021).
FAQs
What is EBITDA?
EBITDA is earnings before interest, taxes, depreciation, and amortization, highlighting operating cash potential (Investopedia, https://www.investopedia.com/terms/e/ebitda.asp).
Why choose EBITDA over net income?
EBITDA strips out financing and accounting choices, enabling cleaner peer comparisons (Morningstar Equity Research, 2022).
How do I read a negative EBITDA?
Negative EBITDA signals core operations are loss-making and may require restructuring (Moody’s Corporate Methodology, 2022).
What counts as a healthy EBITDA margin?
Many analysts flag 10–20 % as sustainable for mature firms (Deloitte Industry Benchmarks, 2023).
How does EBITDA assist valuation?
Buyers multiply EBITDA by industry multiples to estimate enterprise value (PwC Valuation Handbook, 2023).
Is EBITDA a GAAP metric?
No. “EBITDA is a non-GAAP measure requiring reconciliation” (SEC Regulation G, 2020).
It ignores capital spending, working-capital swings, and debt costs, masking liquidity risk (IMF Fiscal Monitor, 2021).
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The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.
