EBITDA Calculator & Business Valuation
Free EBITDA calculator with adjusted EBITDA add-backs, EBITDA margin and a built-in business valuation calculator. Paste numbers straight from your P&L — commas stay, dollar signs are stripped.
EBITDA inputs
Margin & valuation
Estimated business valuation
Estimate only. Real-world buyers adjust for growth, customer concentration, working capital and recurring revenue. Use this as a starting anchor, not a transaction price.
- Adjusted EBITDA with the add-backs lenders and buyers actually negotiate: above-market owner compensation, one-time costs, personal expenses through the business
- A valuation-multiple slider (3×–8×) tied to business type, producing an estimated enterprise value from adjusted EBITDA
- Glossary distinguishes EBITDA from Seller's Discretionary Earnings — the confusion that mis-prices most small-business deals
EBITDA build · what stacks into your number
Net income first, then each item added back to reach EBITDA — with the adjusted-EBITDA total as the final bar.
Get your real business valuation
Calculators give estimates. We give a defensible valuation range — based on your industry multiple, normalized EBITDA, and the buyer pool most likely to bid. Free, no obligation, same-day reply.
Get my free valuation reviewNo credit pull · No spam · Reply within hours
Case Studies — files like this
Anonymized case studies from our desk. Names and identifying details removed.
- Case study · CommercialStructuring a Private Commercial Mortgage to Clear ~$7M in CRA Tax DebtDone right, a structure like this clears the CRA debt for a fraction of the alternatives and buys time to refinance into lower-cost lending once the pressure lifts, on terms a CPA can approve.Read the file →
- Case study · Commercial / Alternative-to-ABanks Declined. Private Lenders Charged 10%+. We Cut His Rate in Half.Cut the borrower's interest rate in half, moved from double-digit private mortgage costs to an alternative commercial mortgage, paid down principal, improved his credit and cash flow, and positioned him for a prime-lender refinance within two years — one broker, one custom plan, from private exit to prime placement.Read the file →
How the EBITDA calculator works
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization. Pull each line straight from your income statement. The formula strips out financing structure (interest), tax policy and non-cash accounting charges so you can compare operating performance across businesses.
Adjusted EBITDA add-backs
Adjusted EBITDA normalizes owner-operator items most buyers add back: owner compensation above market rate, one-time legal or settlement costs, personal expenses run through the business, and other non-recurring items. This is what lenders and M&A buyers actually underwrite to.
Business valuation calculator
Valuation ≈ Adjusted EBITDA × industry multiple. Commonly quoted ranges: small owner-operated services 3–4×, mid-market 5–6×, SaaS / high-growth 7–8×+. Real transactions also weigh growth rate, customer concentration, recurring revenue and working capital — treat this as a starting anchor, not a price.
Also see: Commercial land transfer tax → · Financing fees →
EBITDA questions, answered
What is EBITDA?+
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It's a proxy for the cash a business generates from operations before financing structure and non-cash accounting charges. Formula: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization.
What is Adjusted EBITDA?+
Adjusted EBITDA layers add-backs on top of EBITDA — owner compensation above market, one-time legal settlements, personal expenses run through the business, and other non-recurring items. Buyers and lenders use Adjusted EBITDA to value the business as if it were run by a normal management team.
How do I use the business valuation calculator?+
Multiply Adjusted EBITDA by an industry multiple. Commonly quoted ranges: small owner-operated service businesses around 3–4×, established mid-market companies around 5–6×, and SaaS or high-growth businesses 7–8× and above — actual multiples vary by industry, growth and deal terms. Adjust the slider to match your profile.
What is a good EBITDA margin?+
EBITDA margin = Adjusted EBITDA ÷ Revenue. As commonly quoted benchmarks: around 10% is healthy for most service businesses, 15–25% for product businesses and 30%+ for software. Below 5% usually means pricing power or cost structure needs work before a sale.
Every calculator here is built on published Canadian government rules and lender methodology, and was last checked for accuracy on August 1, 2026 — the arithmetic re-verified and every page re-read on screen. Rates and thresholds change — we confirm the current numbers for your file before you rely on them.