EBITDA Calculator

💡 Understanding EBITDA — The Universal Profitability Metric

EBITDA strips out financing decisions (interest), tax jurisdictions (taxes), and accounting choices (depreciation and amortization) to reveal a company's core operating profitability. This makes it the most commonly used metric for comparing companies across industries, capital structures, and geographies.

The formula is: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization. EBITDA margin (EBITDA ÷ Revenue × 100) benchmarks operating efficiency. Software companies often have 30–50% EBITDA margins, while retail operates at 5–15%. Higher margins indicate stronger pricing power and operational leverage.