EBITDA Calculator
Measure Operational Performance
Calculate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to measure your company's operational performance and profitability.
Essential metric for business valuation and financial analysis
EBITDA
Earnings Before Interest, Tax, Depreciation & Amortization
Net Profit
₹10,00,000
Add-backs
₹3,75,000
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's core profitability — removing financial and accounting decisions from the equation.
Advantages of EBITDA
- Shows operational efficiency
- Easy to compare across companies
- Useful in business valuations and mergers
- Removes non-cash and one-time expenses
Disadvantages of EBITDA
- Ignores capital expenditures
- Can mislead in debt-heavy firms
- Not recognized under GAAP or IFRS
- Doesn't reflect actual cash flow
When Do You Need EBITDA?
- For internal financial analysis
- During fundraising or investment pitching
- When benchmarking business performance
- To support business valuation
EBITDA Formula
Example Calculation
Company ABC's Financial Data:
This shows the company's operational profitability before financial and accounting decisions.
💡 Pro Tip
EBITDA is particularly useful when comparing companies in the same industry, as it removes the effects of different financing and accounting policies.
⚠️ Remember
While EBITDA shows operational performance, don't ignore capital expenditures and working capital changes when evaluating a business.
Related Financial Analysis Tools
Operating Margin
Calculate operating margin to measure operational efficiency alongside EBITDA.
Profit Margin
Calculate various profit margins to complement your EBITDA analysis.
ROE Calculator
Calculate Return on Equity for comprehensive financial performance analysis.
ROA Calculator
Calculate Return on Assets to measure asset utilization efficiency.
Revenue Calculator
Calculate total revenue as the starting point for EBITDA calculations.
Break-even Calculator
Determine break-even points for comprehensive business analysis.