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.
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Case Studies — files like this
Anonymized case studies from our files. Names and identifying details removed.
- Case study · Commercial / Business FinancingThe Branch Offered $2,000. We Arranged a $1.1M Daycare Financing Package.Its bank branch offered a $2,000 corporate-card increase. A complete commercial submission brought an approved and signed package of about $1.1 million: leasehold improvements, equipment, operating credit, business credit cards and existing debt consolidation.Read the file →
- Case study · Commercial / HealthcareFour Credit Facilities. No Client Cash Down. One Medical Clinic.A North Shore medical clinic needed real estate, leasehold and operating financing. We arranged four coordinated credit facilities with no client cash used for the down payment, and the three loans priced under 5%.Read the file →
- Case study · CommercialStructuring a Private Commercial Mortgage to Clear ~$7M in CRA Tax DebtApproved, not yet closed: a multi-layered private mortgage against the estate's real estate, applied straight to the CRA payout, clears the debt for a fraction of the alternatives and buys time to refinance into lower-cost lending once the pressure lifts.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: DSCR & maximum loan → · 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 October 15, 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.