EBITDA Calculator
Calculate your business's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and compare margins against industry benchmarks.
Calculation Method
Choose how you want to calculate EBITDA based on the financial data you have available.
Financial Inputs
Enter your net profit and each component that gets added back to calculate EBITDA.
The bottom line from your P&L or tax return — your starting point.
Total interest paid on business debt (loans, lines of credit, equipment financing).
Federal, state, and local income taxes paid by the business entity.
Non-cash charge for the wear and tear of tangible assets (vehicles, equipment, buildings).
Non-cash charge for intangible assets (patents, goodwill, software, franchise fees).
Industry Benchmark (optional)
Select an industry to compare your EBITDA margin against typical ranges.
What Is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's operating profitability by stripping out financing decisions (interest), tax jurisdictions, and non-cash accounting charges (depreciation and amortization).
Business buyers and private equity firms use EBITDA as the standard earnings metric for companies with $5M+ in revenue or professional management teams. For smaller owner-operated businesses, SDE (Seller's Discretionary Earnings) is typically more appropriate.
EBITDA Formula
EBITDA = Net Profit + Interest + Taxes + Depreciation + Amortization
You can also calculate EBITDA from the top down: start with revenue, subtract COGS and operating expenses, but do NOT subtract depreciation, amortization, interest, or taxes. Both methods should produce the same result.
EBITDA vs. SDE: Which Should You Use?
| EBITDA | SDE | |
|---|---|---|
| Best for | Larger businesses ($5M+ rev) | Owner-operated businesses |
| Owner salary | NOT added back | Added back |
| Typical multiples | 4x-8x | 2x-5x |
| Used by | PE firms, strategic buyers | Individual buyers, SBA lenders |
What Is a Good EBITDA Margin?
EBITDA margins vary significantly by industry. Capital-light service businesses (consulting, software) often achieve 20-35% margins, while capital-intensive businesses (gas stations, restaurants) may run at 4-15%. Use this calculator's industry benchmark feature to see where your business stands relative to peers.
When evaluating a business for acquisition, look for EBITDA margins at or above the industry median. Below-median margins may indicate operational inefficiency (an opportunity for a buyer) or structural issues (a risk).
Continue Your Research
Guides, reports, and analysis to inform your next acquisition.
Business Valuation Multiples by Industry: 2026 Benchmark Data
Complete reference data on SDE and EBITDA multiples across 25+ industries, plus the factors that drive valuations higher or lower in real acquisitions.
Industry ReportCommercial Cleaning Services: The $112B Industry PE Can't Stop Buying
The U.S. commercial cleaning market hit $112 billion in 2026 (IBISWorld) and is growing 5.6% annually (Grand View Research). PE platforms ar...
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