EBITDA Calculator

Calculate Earnings Before Interest, Taxes, Depreciation & Amortization

Calculate EBITDA to measure your company's operating performance and profitability before non-operating expenses.

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EBITDA Formula

EBITDA = Revenue - COGS - Operating Expenses + Depreciation + Amortization

Or: EBITDA = Operating Income + Depreciation + Amortization

What is EBITDA?

EBITDA measures a company's operating performance by excluding non-operating expenses like interest, taxes, depreciation, and amortization. It's widely used for company valuation and comparing profitability across businesses.

Understanding EBITDA

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure of a company's overall financial performance and is used as an alternative to net income.

Key Benefits:

  • Focuses on operating profitability
  • Enables comparison across companies
  • Useful for valuation multiples
  • Excludes capital structure effects
  • Shows cash generation potential

EBITDA Margin Benchmarks

EBITDA margins vary by industry. Here are typical ranges:

  • Software/SaaS: 20-40%
  • Healthcare: 15-25%
  • Manufacturing: 10-20%
  • Retail: 5-15%
  • Restaurants: 10-18%
  • Real Estate: 35-50%

Higher EBITDA margins generally indicate better operational efficiency and profitability.