EBITDA

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EBITDA

What is EBITDA?

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It’s an important financial metric that serves as a proxy for the cash flow and profitability of your business.

How to Calculate EBITDA

In the sample SaaS P&L below, I demonstrate how we arrive at EBITDA when adding back the financial components to net income.

ebitda formula
EBITDA Example Calculation

Download

Download the EBITDA slides below.

Additional Resources

EBITDA is a key component in SaaS Operating Leverage at The SaaS CFO

EBITDA is measured in the Rule of 40 at The SaaS CFO