EBITDA Calculator | Mehmi Financial Group

EBITDA Calculator

Calculate EBITDA and Adjusted EBITDA to understand your business's operating performance and valuation potential.

What is EBITDA?

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures a company's operating profitability by excluding non-operating expenses. It's widely used by lenders and investors to evaluate business performance.

Your EBITDA
$0
0% EBITDA Margin

EBITDA Build-Up

Net Income$150,000
+ Interest$45,000
+ Taxes$55,000
+ Depreciation$80,000
+ Amortization$20,000
= EBITDA$350,000

Key Metrics

17.5%
EBITDA Margin
7.5%
Net Margin
5%
D&A / Revenue
7.8x
Interest Cover

EBITDA can be calculated two ways:

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

Or starting from operating income:

EBITDA = Operating Income + Depreciation + Amortization

Comparability: Removes effects of financing and accounting decisions to compare companies fairly.

Cash Proxy: Approximates operating cash flow before capital investments.

Valuation: Used with multiples to estimate business value.

Strong: EBITDA margin above 20%

Average: EBITDA margin 10-20%

Weak: EBITDA margin below 10%

Note: Benchmarks vary significantly by industry.

*All amounts in Canadian dollars. Estimates only—this is not a financing offer or approval. Taxes (GST/PST/HST) NOT included.

Use this calculator to estimate earnings before interest, taxes, depreciation, and amortization using your income statement inputs. You can also model adjusted earnings (common add-backs) and view a simple valuation range using an earnings multiple.

What you can do on this page

  • Estimate earnings before interest, taxes, depreciation, and amortization from net income and add-backs
  • Calculate earnings margin and basic coverage metrics for lender-style analysis
  • Estimate adjusted earnings using common one-time or non-operating add-backs
  • View a simple valuation range using an earnings multiple (planning only)

FAQs

Everything you need to know about how this calculator works, what the results mean, and what is included. If you need a quote or help reviewing your numbers, feel free to contact our credit analysts.
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What does earnings before interest, taxes, depreciation, and amortization mean?
It is a common earnings measure that strips out financing costs, taxes, and certain accounting charges to focus on operating performance.
How do you calculate earnings before interest, taxes, depreciation, and amortization?
A common method is net income plus interest expense, taxes, depreciation, and amortization.
What is a “good” earnings margin?
It depends on industry, size, and business model. Many stable businesses target double-digit margins, but benchmarks vary widely.
What is adjusted earnings and why does it matter?
Adjusted earnings add back certain one-time, non-recurring, or non-operating items to estimate normalized earning power, often used in valuations.
Are add-backs always accepted by lenders or buyers?
No. Add-backs typically need documentation and must be reasonable, recurring, and defensible.
Is this a professional valuation?
No. Valuation outputs are rough planning estimates. Formal valuations require deeper diligence and professional analysis.

Disclaimer:
This Truck & Heavy Equipment Financing Calculator is provided for informational purposes only. It offers estimates based on the information provided and current average rates, which may vary depending on individual creditworthiness, lender policies, market conditions, and other factors. This calculator does not constitute a loan offer, lease offer, or approval from Mehmi Financial Group or its affiliates. Please contact Mehmi Financial Group directly to confirm current rates, terms, and actual financing availability. Mehmi Financial Group accepts no liability for decisions made using this calculator.

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