EBITDA Diagnostic Tool

Calculate EBITDA for Business Sale

A preliminary diagnostic tool for founder-led businesses to understand their normalized EBITDA before engaging an investment banker or entering an M&A process. All calculations are client-side — no data is transmitted.

EBITDA Calculation Tool

Enter your most recent full-year financial figures. All inputs are in US dollars. This tool produces a preliminary estimate only — not a formal EBITDA normalization analysis.

Input Financial Data
Adjusted EBITDA (Estimated)
EBITDA Margin
Gross Profit

This is a preliminary estimate based on the inputs provided. It does not account for revenue recognition adjustments, related-party transactions, or detailed add-back analysis. A formal EBITDA normalization engagement produces a fully documented, defensible adjusted EBITDA schedule. Learn about our normalization service →

What Buyers Look For
Adjusted EBITDA

Normalized earnings before interest, taxes, depreciation, and amortization — the primary valuation metric in most lower middle-market transactions.

EBITDA Margin

Adjusted EBITDA as a percentage of revenue. Margin profile significantly affects valuation multiples and buyer interest.

Add-Back Documentation

Each add-back requires documented justification. Unsupported add-backs are disallowed by buyers and their QofE providers.

Need a Full Analysis?

This tool provides a preliminary estimate. A formal EBITDA normalization engagement produces a fully documented adjusted EBITDA schedule structured for investment banker and buyer review.

Start M&A Preparation →
Data Privacy Note

All calculations run in your browser. No financial data is transmitted to any server. This tool does not store, log, or transmit any inputs.

Understanding EBITDA

EBITDA Calculation for Business Sale

Reported EBITDA

Revenue minus COGS minus operating expenses, then adding back depreciation and amortization. This is your starting point — but rarely what buyers use for valuation.

Adjusted EBITDA

Reported EBITDA plus documented add-backs for owner compensation adjustments, one-time expenses, and non-recurring items. This is the number buyers use to calculate enterprise value.

Run-Rate EBITDA

Forward-looking EBITDA incorporating operational changes, new contracts, and cost structure modifications. Most relevant when your business has materially changed in the past 12 months.

Next Step

Ready for a Full EBITDA Normalization?

A preliminary estimate is a starting point. A formal normalization produces the defensible adjusted EBITDA documentation required for a transaction.

Important Disclaimer

This EBITDA diagnostic tool provides a preliminary estimate for informational purposes only. Results are calculated based on user-provided inputs and do not constitute a formal EBITDA normalization analysis, financial audit, or professional accounting opinion. AJA Automation Intelligence is not a CPA firm and does not provide tax, legal, or investment advice. Clients should consult licensed professionals for tax or legal decisions.