EBITDA Calculator
Calculate your EBITDA quickly and accurately. Start from revenue, net income, or EBIT, and we'll guide you through each step with clear explanations.
- What is EBITDA?
- Earnings Before Interest, Taxes, Depreciation, and Amortisation. It measures a company's operating profitability before non-operating expenses and non-cash charges. EBITDA is the primary metric used in M&A valuations.
- Calculate Your EBITDA
- Choose your starting point: we'll calculate the rest
- Start with your revenue and work down to calculate EBITDA step by step.
- Your EBITDA
- What's Next?
- Healthy EBITDA margins vary by industry: 10-15% for retail, 15-25% for manufacturing, 20-40% for software.
- EBITDA Formulas
- Three ways to calculate EBITDA depending on your starting point
- From Revenue
- From Net Income
- From EBIT
- The simplest formula when you already have your operating income (EBIT).
- Key Terms Explained
- Also called Operating Income. Shows profitability from core operations before financing costs and taxes.
- Adds back non-cash expenses (D&A) to EBIT. The most common metric for M&A valuations.
- Non-cash expense that allocates the cost of physical assets (equipment, buildings) over their useful life.
- Non-cash expense that allocates the cost of intangible assets (patents, goodwill) over time.
- Direct costs of producing goods or services, including materials, direct labour, and manufacturing overhead.
- Shows what percentage of revenue becomes EBITDA. Higher margins indicate better operational efficiency.
- Know Your EBITDA? Calculate Your Value
- Now that you know your EBITDA, use our valuation calculator to estimate your business worth based on industry multiples.
- Built for European businesses
- Free to start. No account needed for the instant benchmark.
- The one success fee we intend to charge, only when a deal closes.
- The instant benchmark takes under 60 seconds.
- Owners across the EU, EEA, UK and wider Europe can use the valuation form.
- Export or permanently delete everything we hold, any time.
- Manufacturing & industry
- Technology & telecoms
- Consumer, retail & media
- Healthcare & education
- Professional & financial services
- Energy, transport & agriculture
- FOR BUYERS
- FOR SELLERS
- Ready to know your number?
- The instant benchmark gives you an indicative value range in under 60 seconds, measured against completed sales of medium sized European businesses. The full valuation takes about 5 minutes, uses your own financials and shows up to four methods. Both are free. Both are indicative estimates, not a formal appraisal.
- The one success fee we intend to charge applies only when a deal closes. Provisional. No engagement letter has been drafted yet, so this is how we intend to charge rather than terms you can hold us to.
See what it's worth