EBITDA Calculator

About this calculator

EBITDA — Earnings Before Interest, Taxes, Depreciation, and Amortization — starts from a company's net income and adds back the expenses that vary most by capital structure and accounting choices: interest (which depends on how much debt a company carries), taxes (which depend on jurisdiction and tax strategy), and depreciation and amortization (non-cash accounting charges for wearing-down assets and intangibles).

Analysts and investors use EBITDA to compare the core operating performance of companies on a more level footing, since two businesses with identical operations can report very different net income just because one is more leveraged or depreciates assets faster. It's also a common input for valuation multiples (like EV/EBITDA) in M&A and equity analysis. This calculator takes net income, interest, taxes, depreciation, and amortization and adds them together to return EBITDA.