EBITDA is the acronym for Earnings Before Interest, Depreciation, Taxes, and Amortization. It is used to measure profitability. One should note that EBITDA is not a reliable cash flow evaluation tool because it does not consider calculating the cash utilized for funding working capital or replacing old equipment.
To calculate EBITDA online use the following formula:
EBITDA = Revenue - Expenses (excluding tax, interest, depreciation, and amortization)