EBITDA Calculator

From net income: EBITDA = Net Income + Taxes + Interest + Depreciation & Amortization. From operating income: EBITDA = Operating Income (EBIT) + Depreciation & Amortization — both approaches give the same result, since operating income already excludes interest and taxes.

Adjusted EBITDA adds back one-time or non-recurring expenses (legal settlements, restructuring costs), above-market owner compensation (common in small/private businesses being valued for sale), and discretionary growth spending — the goal is to show the business's normalized, ongoing earning power.

EBITDA strips out financing structure (interest), tax jurisdiction, and non-cash accounting choices (depreciation method), making it easier to compare the core operating performance of different companies, or the same company's own operations before and after a change in capital structure.

EBITDA margin = EBITDA ÷ Revenue × 100. It shows what share of revenue converts into operating cash flow before financing, tax, and non-cash charges — useful for comparing profitability across companies of different sizes within the same industry.