Adjusted EBITDA Calculator

Calculate your adjusted EBITDA to understand normalized earnings by removing non-recurring and non-operational items. This calculator provides a clearer picture of ongoing business performance for valuation and investment decisions.

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Basic EBITDA

$800,000.00

earnings before adjustments

Total Addbacks

$225,000.00

expenses to add back

Total Deductions

$5,000.00

income to subtract

Adjusted EBITDA

$1,020,000.00

normalized earnings

EBITDA Margin

100.00%

basic profitability

Adjusted EBITDA Margin

127.50%

normalized profitability

Adjustment Percentage

27.50%

change from basic EBITDA

Normalized Earnings

$920,000.00

after depreciation & amortization

Restructuring Costs

$25,000.00

addback

Legal Settlements

$15,000.00

addback

Asset Impairments

$10,000.00

addback

Stock Compensation

$30,000.00

addback

One-Time Expenses

$20,000.00

addback

Owner Compensation

$100,000.00

addback

Rent Adjustment

$15,000.00

addback

Other Adjustments

$10,000.00

addback

Non-Operational Income

$5,000.00

deduction

Results calculated based on your inputs

About Adjusted EBITDA Calculator

The Adjusted EBITDA Calculator is a sophisticated financial tool that normalizes earnings by adjusting EBITDA for items that don't reflect ongoing business operations. This calculation removes non-recurring expenses, one-time charges, non-operational income, and other items to provide a more accurate picture of sustainable business performance and cash flow generation potential.

Understanding your adjusted EBITDA is crucial for accurate business valuation, investment analysis, and financial planning. By removing items such as restructuring costs, legal settlements, asset impairments, and other non-operational factors, adjusted EBITDA provides a cleaner view of core business profitability. This metric is particularly important for investors, lenders, and business owners who need to assess the true earning power of a business without the noise of one-time events or accounting anomalies.

This calculator is essential for business owners, financial analysts, investment professionals, and valuation experts who need to determine normalized earnings, assess business performance, and make informed investment or lending decisions. By analyzing both reported and adjusted earnings, you can develop a comprehensive understanding of your business's true financial performance and make strategic decisions based on sustainable earnings rather than one-time events.