Business & Finance

EBITDA & Adjusted EBITDA Calculator

Calculate EBITDA and Adjusted EBITDA to measure operational cash profitability and prepare for business valuation or sale.

What this calculator does

The EBITDA & Adjusted EBITDA Calculator estimates your result instantly from the values you enter, using standard business & finance formulas. Calculate EBITDA and Adjusted EBITDA to measure operational cash profitability and prepare for business valuation or sale. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.

About EBITDA & Adjusted EBITDA Calculator

The EBITDA Calculator computes Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), the standard corporate finance metric used by private equity and lenders to evaluate core operational cash flow.

Formula & Mathematical Calculation

EBITDA = Net Income + Interest Expense + Income Taxes + Depreciation + Amortization

Adjusted EBITDA = EBITDA + Non-Recurring Owner Add-Backs / One-Time Expenses

Calculation Example

$150,000 Net Income ($30k Interest + $45k Taxes + $60k Depreciation + $15k Amortization): EBITDA = $300,000.00 (EBITDA Margin = 25% on $1.2M revenue).

Key Benefits

  • Calculates standard EBITDA and Adjusted EBITDA with owner add-backs
  • Removes capital structure and accounting distortion for fair business valuation
  • Essential for business acquisition, mergers (M&A), and bank lending covenants
  • Computes EBITDA Margin percentage
  • Professional financial underwriting tool

How to Use this Calculator

  1. Enter Net Income (Bottom Line)
    Input net profit from income statement.
  2. Add Interest Expense & Taxes
    Input debt interest payments and corporate income taxes.
  3. Add Depreciation & Amortization
    Input non-cash asset depreciation and amortization.
  4. Calculate EBITDA
    Click Calculate to view EBITDA and EBITDA margin.

Assumptions & Limitations

What the calculation assumes

  • Every value you enter is treated as an exact, known amount.
  • Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
  • Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
  • Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
  • Amounts are unit-agnostic: results are returned in the same currency you enter.

What it does not cover

  • EBITDA & Adjusted EBITDA Calculator produces estimates for education and planning, not a quote, offer or professional advice.
  • Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
  • Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
  • Figures are only as accurate as the inputs you supply — check them before acting on the result.
  • For decisions with lasting financial impact, confirm the numbers with a qualified professional.

Frequently Asked Questions

EBITDA isolates core operational earnings by stripping out financing decisions (interest), tax jurisdictions (taxes), and accounting methods (depreciation), allowing fair comparisons across companies.

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