EBITDA Calculator
Calculate your EBITDA and Adjusted EBITDA — the metrics buyers use to determine how much your business is worth.
Income Statement Inputs
Adjustments (Add-backs)
Amount above what a replacement CEO/GM would cost
Lawsuits, equipment failures, moving costs, etc.
Car, travel, phone, meals, family member salary
What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a business's operating profitability by stripping out financing and accounting decisions that vary between companies.
EBITDA is the most common metric used by buyers and investors to value mid-market businesses. Your business value is typically calculated as EBITDA multiplied by an industry-specific multiple.
EBITDA vs. Adjusted EBITDA
Adjusted EBITDA goes further by adding back expenses that won't continue after the sale — like above-market owner compensation, one-time legal fees, or personal expenses run through the business. This gives buyers a clearer picture of the business's true earning power.
Why It Matters When Selling
Every dollar you add to your Adjusted EBITDA gets multiplied by your industry multiple. If your multiple is 5x and you can justify $50K more in add-backs, that's $250K more in business value. Work with your accountant to identify every defensible add-back before going to market.
Ready to see the full picture? The SellRipe Exit Readiness Assessment evaluates all the factors that affect your valuation — not just the financial ones.