{
  "title": "What is EBITDA? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-ebitda/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-22",
  "updated": "2026-10-22",
  "section": "Glossary",
  "keyword": "EBITDA",
  "short_answer": "EBITDA is earnings before interest, taxes, depreciation and amortization. It is net income with those four costs added back, so it shows the operating cash profit of a business before financing and accounting choices. Businesses with a manager in place are usually priced as a multiple of EBITDA.",
  "facts": {
    "Net income": [
      "$310,000",
      "After all costs, including the manager's $95,000 salary"
    ],
    "Interest": [
      "$40,000",
      "On equipment loans"
    ],
    "Taxes": [
      "$85,000",
      "State and federal"
    ],
    "Depreciation": [
      "$55,000",
      "Vehicles and machines"
    ],
    "Amortization": [
      "$10,000",
      "Software and a past acquisition"
    ],
    "EBITDA": [
      "$500,000",
      "Sum of the lines above"
    ],
    "EBITDA margin": [
      "12.5%",
      "$500,000 ÷ $4,000,000"
    ]
  },
  "sources": [
    "https://www.investopedia.com/terms/e/ebitda.asp",
    "https://www.investor.gov/introduction-investing/investing-basics/glossary/non-gaap-financial-measures",
    "https://www.sba.gov/funding-programs/loans/7a-loans"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}