Last updated: March 2, 2026

What Is EBITDA?

Formula

EBITDA adds back interest, taxes, depreciation, and amortization to net income to show operating profitability.

It is widely used to compare companies across industries by removing the effects of financing and accounting decisions.

Common use cases:

  • Business valuation
  • Comparing company profitability
  • Evaluating operating performance

Frequently Asked Questions

Share & Embed

Was this calculator helpful?

Related Calculators