Calculator Inputs
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Results
$370,000.00
EBITDA
37.0%
EBITDA Margin
$300,000.00
Operating Income (EBIT)
$600,000.00
Gross Profit
$230,000.00
Net Income (est.)
$70,000.00
D&A Total
About This Calculator
Why EBITDA Matters
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) shows your company's core operating profitability by removing non-operational and non-cash items. It's the most commonly used metric for business valuation and M&A.
EBITDA Multiples by Industry
- Technology/SaaS: 15-30x EBITDA
- Healthcare: 8-15x
- Manufacturing: 5-10x
- Retail: 3-7x
- Restaurants: 2-5x
Frequently Asked Questions
EBITDA vs net income — which matters more?
Net income shows actual profit (after all expenses). EBITDA shows operating efficiency. Investors and buyers use EBITDA to compare companies across industries, ignoring different capital structures and tax situations. A company can have positive EBITDA but negative net income.
What's a good EBITDA margin?
10% is healthy, 20%+ is strong, and 30%+ is excellent (common in software). Below 5% may indicate pricing or cost structure problems. Compare against industry peers, not absolute numbers.