BUSINESS FINANCE VALUATION M&A TOOL INVESTOR READY

EBITDA Calculator

Calculate Earnings Before Interest, Taxes, Depreciation & Amortization using either the bottom-up or top-down method. Includes adjusted EBITDA, margin analysis, EV/EBITDA valuation, and industry benchmarks.

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Financial Inputs
📊 Start with Net Income
Bottom line from income statement — can be negative
Loan interest, bond interest, line of credit interest
Federal + state income tax from income statement
Annual depreciation of tangible assets (property, equipment)
Amortization of intangible assets (patents, goodwill, software)
⚙️ Adjustments (optional)
Adjusted EBITDA adds back one-time, non-recurring items that distort the true operating picture. Common in M&A and investor presentations.
Lawsuit settlements, restructuring costs, disaster losses
Excess salary an owner pays themselves above a market-rate replacement
Non-cash expense — often added back for Adjusted EBITDA
Asset sale gains, insurance proceeds, PPP loan forgiveness
📈 Enterprise Value (optional)
2
EBITDA Analysis
Enter your financial data
then click Calculate →

Supports bottom-up & top-down
with adjustments & valuation
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Industry EBITDA Margin Benchmarks

Typical EBITDA margins and EV/EBITDA multiples by industry. Your result will be highlighted when you calculate.

📐Two Ways to Calculate EBITDA

EBITDA can be calculated two ways — both give the same answer:

Bottom-Up:
EBITDA = Net Income
         + Interest Expense
         + Tax Expense
         + Depreciation
         + Amortization
Top-Down:
EBITDA = Revenue − COGS
         − Operating Expenses
         (excluding D&A)

Use bottom-up when you have a completed income statement. Use top-down when building a forecast or model.

💡What EBITDA Is (and Isn't)

What it measures: Operating profitability — how much cash a business generates from its core operations before financing decisions and accounting treatments.

Used for: Business valuation (M&A), comparing companies across industries, bank loan underwriting (DSCR), SBA loan qualifying, investor decks.

Limitations: EBITDA ignores capital expenditures (CapEx), working capital changes, and actual cash taxes paid. Warren Buffett calls it a "dangerous" metric when used in isolation — always pair it with free cash flow.

EBITDA Margin = EBITDA ÷ Revenue × 100
Enterprise Value = EBITDA × Industry Multiple
DSCR = EBITDA ÷ Annual Debt Service