Transparent Growth Measurement

EBITDA Calculator: Measure Business’s Financial Growth

Similar to revenue or net income, EBITDA is a metric for profitability. EBITDA denotes earnings before interest, taxes, depreciation, and amortisation. EBITDA calculator is an analytical tool for examining a company’s operational success over a certain year or quarter.

Financial experts can utilise information from annual financial statements to calculate a company’s EBITDA profitability. Generally speaking, EBITDA calculator examines a company’s earnings before deducting taxes, interest, and asset depreciation.

Finance experts can also compare businesses in states with various tax rates using EBITDA. The assumption is that since taxes are typically outside of a company’s control, they shouldn’t actually have an impact on its profitability.

Businesses, valuators, bankers, and other stakeholders frequently use an EBITDA calculator to assess a company’s profitability prior to non-core costs and charges and to compare that performance to that of its competitors in the industry.

Why is it important to use an EBITDA calculator?
  • EBITDA calculator is an online tool enables you to determine a company’s profitability.
  • EBITDA calculator gives you a more straightforward, rawer estimate of your earnings.
  • It illustrates the company’s value to potential investors and purchasers, creating a picture of the company’s growth prospects.

Hmmm… looks like we can help you refine those numbers for better results and profitability!

Get Started!

7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones! That’s why extending your CLV is essential to a healthy business model & overall business strategy… Don’t believe us? Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.


Why these 7 metrics are significant for your business and should be measured at regular intervals?

Other Calculator

Explore More


Answers to Frequently Asked Questions

What is EBITDA?

Earnings before interest, taxes, depreciation, and amortisation, or EBITDA, is an alternative metric to net income for determining profitability. EBITDA aims to represent the cash profit produced by the company’s activities by eliminating non-cash depreciation and amortisation expense, taxes, and debt charges based on the capital structure.

How do you calculate EBITDA?

To determine a company’s EBITDA, you can utilise this EBITDA calculation formula:

Formula 1
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

Why use EBITDA?

Regardless of the depreciation assumptions or financing strategies utilised by the companies, EBITDA can be used to track and compare the underlying profitability of those companies.

What is included in EBITDA?

EBITDA calculator includes multiple external financial aspects such as:
EBITDA = Net Income + Taxes + Interest Expense + Depreciation & Amortization.

What are the limitations of EBITDA?

By reimbursing earnings with taxes and interest, the EBITDA calculator excludes the cost of debt. It can be used to cover up poor decisions and financial problems. You might not be able to obtain a loan for your company if you use EBITDA. Loans are computed based on the actual financial performance of the organisation.

Contact Us